Executive Order to Increase Minimum Wage for Federal Contractors

The Biden Administration has issued an Executive Order that would require federal contractors to pay...



Posted by Michiko Lynch, HR Consultant on May 14 2021
Michiko Lynch, HR Consultant

The Biden Administration has issued an Executive Order that would require federal contractors to pay $15/hour minimum wage to thousands of workers on covered federal contracts. This increase in minimum wage would start on January 30, 2022 for all new contract solicitations, and by March 30, 2022, all agencies would be required to implement the minimum wage into their contracts. In addition to raising the minimum wage for federal contract workers, the executive order will also do the following:

  • Continue to measure inflation, so that in each year after 2022, the minimum wage would automatically adjust with to reflect the changes in the cost of living
  • Eliminate the tipped minimum wage for federal contractors by 2024
  • Ensure the $15 minimum wage for federal contract workers with disabilities
  • Restore minimum wage protections to outfitters and guides operating on federal land

This Executive Order will build on a previous order that increased the minimum wage for federal contractors to $10.10, indexed for inflation. The goal of this order is to not only promote the economy and efficiency of the federal government, but to also improve the economic securities of the families of federal contract workers. Stay tuned for more information as this story continues to develop.

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