How often is the minimum wage for contractors updated under Executive Order 13658?

How often is the minimum wage for contractors updated under Executive Order 13658?

• A. Every five years
• B. Every two years
• C. Annually by Consumer Price Index
• D. Every quarter

Answer: (C)

The minimum wage for contractors under Executive Order 13658 is updated annually based on the Consumer Price Index (CPI). This method of adjustment allows the minimum wage to reflect changes in living costs and inflation, ensuring that it remains relevant and effective in protecting the purchasing power of workers. By tying the wage increase to the CPI, the regulation actively responds to economic conditions, making it a dynamic rather than static measure. This annual update mechanism is designed to keep pace with the cost of living, providing a regular opportunity to adjust the wage accordingly. The other options do not align with the regulations established by the Executive Order. For instance, updates every five years or two years could potentially leave workers vulnerable to long periods of stagnant wages in the face of rising costs of living. Similarly, a quarterly update would not provide the stability and predictability businesses need while also being impractical in administrative terms, as wage calculations and adjustments would be overly frequent and burdensome. Thus, the annual adjustment linked to the CPI represents a balanced approach to wage regulation for contractors under the Executive Order.

The minimum wage for contractors under Executive Order 13658 is updated annually based on the Consumer Price Index (CPI). This method of adjustment allows the minimum wage to reflect changes in living costs and inflation, ensuring that it remains relevant and effective in protecting the purchasing power of workers. By tying the wage increase to the CPI, the regulation actively responds to economic conditions, making it a dynamic rather than static measure. This annual update mechanism is designed to keep pace with the cost of living, providing a regular opportunity to adjust the wage accordingly.

The other options do not align with the regulations established by the Executive Order. For instance, updates every five years or two years could potentially leave workers vulnerable to long periods of stagnant wages in the face of rising costs of living. Similarly, a quarterly update would not provide the stability and predictability businesses need while also being impractical in administrative terms, as wage calculations and adjustments would be overly frequent and burdensome. Thus, the annual adjustment linked to the CPI represents a balanced approach to wage regulation for contractors under the Executive Order.