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On April 27, 2021, President Biden issued an Executive Order that will
increase the minimum wage for all employees of covered federal
contractors and subcontractors to $15.00 per hour, with annual
increases beginning in 2023 to account for inflation. The
Executive Order builds upon President Obama s 2014 Executive
Order requiring federal contractors to pay employees at least
$10.10 per hour. The White House expects that hundreds
of thousands of workers will be affected by the Executive
Order. A White House statement on the Executive Order is
available here.
The minimum wage increase does not apply immediately.
13 (also known as the Service
Contract Labor Standards); (3) for concessions;
14
or (4) for services provided to federal employees, their
dependents, or the general public on federal property or lands. The
Executive Order does not apply to contracts subject to the
Walsh-Healey Public Contracts Act.
15 The Executive
Order revokes the Trump Administration s EO 13838, which
removed mandatory federal contractor wage minimums for certain
recreational services and equipment rental contracts on federal
land.
16 That means individuals
performing outfitting and guide services on federal land must be
compensated as any other federal contracting employee under the
Executive Order.
Covered Employees: In identifying employees
covered by the new minimum wage requirement, the initial inquiry is
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On April 27, 2021, President Joe Biden signed an Executive Order (EO) requiring certain federal contractors to pay workers on government contracts at least $15 per hour beginning January 30, 2022. After 2022, the minimum wage will be adjusted annually for inflation at a rate set by the secretary of Labor (the secretary). The EO supported the minimum wage increase by stating that raising worker wages will promote efficiency in federal procurement through: (1) enhanced worker productivity and generation of higher-quality work from increased workers’ health, morale and effort; (2) reduced absenteeism and turnover; and (3) lowered supervisory and training costs.
Donald W. Wanatee Sr. regularly spent as many as 100 hours a week away from the Meskwaki Indian Settlement as he tirelessly advocated for Native American people and issues around the country, often sparing his last dollars to get from place to place.
When he was home, he took his kids on hikes through the Meskwaki Nation s heavily wooded settlement in Tama County, Iowa. He taught them how to grow crops and, being a hobby cartographer, how to navigate forests, said Donnielle J. Wanatee, one of his eight children. As a social worker, he understood kids needs and instilled in each of his own children a lifelong sense of individuality, she said.
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President Joseph Biden has fulfilled a promise to significantly increase the minimum wage for federal contractor workers working “on or in connection with” a covered federal contract. He has issued an executive order raising the minimum wage for these workers from $10.95 an hour to $15 an hour beginning 2022.
When announcing the “Executive Order on Increasing the Minimum Wage for Federal Contractors,” President Biden said the higher wage “will benefit many women and people of color who likely have children and are the breadwinners in their households …. It will help improve the economic security of their families and narrow racial and gender disparities in income.”