Overview
This section provides the foundational definitions for the implementation of Executive Order 14026, specifically defining the geographical reach of the "United States" and the criteria for who qualifies as a "worker" subject to federal contractor minimum wage requirements.
Key Rules
- Geographic Scope: The regulations apply to the 50 States, the District of Columbia, and various territories including Puerto Rico, Guam, the U.S. Virgin Islands, and the outer Continental Shelf.
- Worker Classification: A "worker" is any individual performing work on or in connection with a covered contract whose wages are governed by the Fair Labor Standards Act (FLSA), the Service Contract Labor Standards statute (SCA), or the Wage Rate Requirements (Construction) statute (DBA).
- Exclusions: The definition specifically excludes individuals employed in bona fide executive, administrative, or professional capacities (exempt employees under 29 CFR part 541).
- Broad Coverage: The rule applies regardless of the alleged contractual relationship (e.g., misclassified independent contractors) and explicitly includes apprentices and workers with disabilities performing under special certificates.
- Performance Tiers:
- "On" a contract: Workers directly performing the specific services or construction called for by the contract.
- "In connection with" a contract: Workers performing auxiliary activities that are necessary to the performance of the contract but are not the primary services requested.
Practical Implications
- Contractors must ensure that the Executive Order minimum wage is paid not only to direct laborers but also to support staff (such as custodial or security personnel) whose tasks are necessary for the contract's execution.
- The regulation limits a contractor's ability to avoid minimum wage obligations through independent contractor agreements, as the "worker" status is determined by the nature of the work and governing labor statutes rather than the employer's label.