The Department of Labour in Guam says contracts secured by the government through federal grants are not covered by the minimum wage hike announced by President Barack Obama.
It's director, Manny Cruz, says it will also not apply to federal program employees whose salaries are federally funded.
The Marianas Variety reports Mr Cruz saying the executive order will only apply to future projects that are directly procured by the federal government.
He says federally funded employees will continue to receive the current minimum wage.
During his State of the Union address on Tuesday, President Obama announced he would sidestep Congress and use his executive power to raise the minimum hourly wage for new federal contract workers from $7.25 to $10.10 US.
Manny Cruz says whether or not Congress will challenge that executive action remains to be seen, but it will have an impact on the federal budget because a lot of contract prices will go up.
