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On April 27, 2021, President Joe Biden signed a new executive order (EO) requiring federal contractors and subcontractors to pay a $15.00 minimum wage to the thousands of workers who are working on or in connection with federal contracts. The new EO, titled “Executive Order on Increasing the Minimum Wage for Federal Contractors,” requires contractors to implement the higher minimum wage requirements by early 2022.
The much-anticipated executive order comes just three months after President Biden issued Executive Order 14003, which set the foundation for this new EO by directing the director of the Office of Personnel Management (OPM) to provide a report to the president with recommendations to promote a $15.00 per hour minimum wage for federal employees.