U.S. Department of Labor 
Employment Standards Administration
Wage and Hour Division 
Washington D.C. 20210
MAR 20 1990
MEMORANDUM NO. 151
MEMORANDUM FOR ALL CONTRACTING AGENCIES OF THE FEDERAL GOVERNMENT
AND THE DISTRICT OF COLUMBIA
FROM: NANCY M. FLYNN
Acting Administrator
SUBJECT: Increases in the Federal Minimum Wage
Under the Fair Labor Standards
Amendments of 1989 
The Federal minimum wage under the Fair Labor Standards Act
(FLSA) will increase from $3.35 to $3.80 per hour effective
April 1, 1990, and to $4.25 per hour effective April 1, 1991.
These changes are the result of the Fair Labor Standards Amend-
ments of 1989, Public Law 101-157 (103 Stat. 938), enacted on
November 17, 1989.
Certain prevailing wage determinations issued pursuant to the
Davis-Bacon and Related Acts (DBRA) for inclusion in federally-
funded or assisted construction contracts, and those issued
pursuant to the McNamara-O'Hara Service Contract Act (SCA) for
inclusion in Federal service contracts, will be affected by these
statutory increases in the FLSA minimum wage.
For example, sections 2(a)(1) and 2(b)(1) of SCA specify that the
minimum wages to be paid to employees of contractors furnishing
services to the Government shall not be lower than the minimum
wage prescribed by section 6(a)(1) of the FLSA. These statutory
provisions apply to Federal service contractors and subcontrac-
tors by operation of law, without regard to whether the minimum
wage provisions are specified in wage determinations included in
the contract documents. (See 29 CFR 4.159 - .160.)
The Wage and Hour Division will be updating the SCA and DBRA wage
determinations requiring increases as a result of the 1989 FLSA
Amendments. However, contracting agencies should also review the
SCA and DBRA wage determinations included in their contracts and
pending and upcoming solicitations to ensure that contractors and
potential bidders will be apprised of the increases in the FLSA
minimum wage taking effect on April 1, 1990, and April 1, 1991.

















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Additional information may be obtained from the nearest local
office of the Wage and Hour Division, listed in most telephone
directories under U.S. Government, Department of Labor, or by
contacting the Wage and Hour Division's Office of Program
Operations, Division of Wage Determinations, Room S-3014, 200
Constitution Avenue, N.W., Washington, D.C. 20210, telephone
(202) 523-7531.