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President Biden Issuing Executive Order Raising the Minimum Wage for Federal Contractors

2021-04-28

Certain federal contractors must pay $15 per hour by March 2022

The White House issued a statement regarding President Biden’s Executive Order (E.O.) to raise the minimum wage to $15 for federal contractors.  The Department of Labor’s Wage and Hour Division and the Federal Acquisition and Regulatory Council will engage in rulemaking to implement and enforce the executive order.  

The Order will:

  • Require all agencies, by January 20, 2022, to incorporate a $15 minimum wage in new contract solicitations.  By March 30, 2020, all agencies will be required to implement a minimum wage into new contracts, including existing contracts when the parties exercise their option to extend their contracts annually.
  • Index the minimum wage to an inflation measure to ensure that every year after 2022 will automatically be adjusted to reflect changes in the cost of living.
  • Eliminate the tipped minimum wage for federal contractors by 2024.
  • Ensure a $15 minimum wage for federal contract workers with disabilities.
  • Restore minimum wage protections to outfitters and guides operating on federal lands previously revoked by E.O. 13838.

The foregoing has been prepared for the general information of clients and friends of Workplace Dynamics LLC and is not being represented as being all-inclusive or complete. It has been abridged from legislation, administrative ruling, agency directives, and other information provided by the government. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.