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Attention Federal Government Contractors: Executive Order Issued to Increase Minimum Wage to $15

By at 28 April, 2021, 8:03 am

On April 27, President Biden issued an executive order requiring federal contractors to pay a $15 minimum wage to workers on federal contracts. The Executive Order:

● Increases the hourly minimum wage for federal contractors to $15.Starting January 30, 2022 all agencies will need to incorporate a $15 minimum wage in new contract solicitations, and by March 30, 2022, all agencies will need to implement the minimum wage into new contracts.

● Will index the minimum wage to an inflation measure so that every year after 2022 it will be automatically adjusted to reflect changes in the cost of living.

● Eliminates the tipped minimum wage for federal contractors by 2024.

● Ensures a $15 minimum wage for federal contract workers with disabilities

● Restores minimum wage protections to outfitters and guides operating on federal lands by revoking President Trump’s executive order 13838 “Exemption From Executive Order 13658 for Recreational Services on Federal Lands.”

The minimum wage for workers performing work on covered federal contracts is currently $10.95 per hour and tipped minimum wage is $7.65 per hour.

Read the White House FACT SHEET here.

 

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