Dive Brief:
- While an Obama-era executive order (E.O. 13658) requires a minimum wage for federal contractors' employees — currently $10.35 — that mandate doesn't extend to contracts for seasonal recreational equipment rental and seasonal recreational services on federal lands, including river running, hunting, fishing, horseback riding, camping, mountaineering activities, recreational ski services and youth camps, according to a memo issued by the U.S. Department of Labor's Wage and Hour Division.
- The clarification followed an executive order from President Donald Trump to the same effect, and WHD also said it will undertake rulemaking to amend its regulations to reflect the order.
- "In the meantime, WHD is issuing this [all agency memorandum] to confirm that the requirements of EO 13658 do not apply to contracts or contract-like instruments with the Federal Government for seasonal recreational equipment rental and seasonal recreational services on federal lands, including river running, hunting, fishing, horseback riding, camping, mountaineering activities, recreational ski services, and youth camps. WHD will continue to administer and enforce EO 13658, however, as it applies to contracts that remain covered in whole or in part by EO 13658, including those that offer lodging and food services associated with seasonal recreational services."
Dive Insight:
Executive Order 13658 established a minimum wage to be paid for parties who contract with the federal government and affected outfitters and guides operating on federal lands.
President Obama signed the order in 2014, setting the minimum wage at $10.10 for all workers on federal construction and service contracts. The president took the action because boosting wages reduces turnover, improves morale and leads to higher productivity overall, WHD said in a statement issued at the time.
The Trump administration, however, said that implementation of the Obama-era order threatened to "significantly raise" the cost of guided hikes and tours on federal lands because outfitters and guides operating on federal lands often conduct multi-day recreational tours leading to substantial overtime hours. President Trump signed Executive Order 13838 in May, exempting seasonal outdoor guides and outfitters. Importantly, the exemption does not apply to lodging and food services associated with seasonal recreational services, which generally involve more regular work schedules and "normal amounts of overtime work," WHD said.