On January 1, 2025, the minimum wage for work performed on or in connection with federal contracts will increase as follows.
The minimum wage will increase to $13.30 per hour and the minimum base wage for tipped employees will increase to $9.30 per hour.
The minimum wage will increase to $17.75 per hour (for both tipped and non-tipped employees).
The Department of Labor has published helpful FAQs on Executive Order 13658 and Executive Order 14026. A side-by-side comparison of these executive orders, including the contracts covered by each, can be found here.
Notice of the minimum wage increase for contracts covered by Executive Order 13658 and Executive Order 14026 was published in the Federal Register on September 30, 2024.
On October 4, 2024, the IRS published Notice 2024-73 with guidance on the eligibility of long-term, part-time employees for participation in ERISA 403(b) plans under SECURE Act 2.0. This update clarifies how part-time employees can qualify for plan participation based on their tenure.
Additionally, the IRS announced plans to issue final regulations for long-term, parttime employee eligibility in ERISA 401(k) plans. These regulations, originally set to apply to plan years beginning after December 31, 2024, have been delayed and will now apply to plan years beginning on or after January 1, 2026, at the earliest.
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12/29 – Gag Clause Prohibition Compliance Attestation – The Consolidated Appropriations Act, 2021, Title II, Division BB contains a reporting requirement for group health plans and health insurers to submit a Gag Clause Prohibition Compliance Attestation annually through the Center for Medicaid & Medicare Services’ Health Insurance Oversight Systems to confirm compliance with the prohibition. For more information, please click here.
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