On August 31, 2020, the Department of Labor’s Wage and Hour Division published its annual update to the minimum wage for federal government contractors. As of January 1, 2021, employees performing services on or in connection with certain types of government contracts will be entitled to a minimum wage of $10.95 per hour. The minimum cash wage for employees who are eligible for the tip credit will increase to $7.65 per hour. The current minimum wages for 2020 are $10.80 and $7.55 per hour, respectively.