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Biden E.O. Raises Federal Contractor Min Wage to $15/hr


Wednesday, May 5, 2021
On April 27, 2021, President Biden issued an Executive Order, effective Jan. 30, 2022, requiring certain federal contractors to pay a $15 minimum wage to workers who work on federal contracts and to adjust the wage annually according to the consumer price index to reflect changes in the cost of living. The current minimum wage for federal contracts is $10.95 per hour. Beginning March 30, 2022, federal agencies will be required to incorporate the $15 minimum wage into new contract solicitations and into existing contracts extended by the contracting parties.
The Executive Order also eliminates the tipped minimum wage for federal workers by 2024. Federal law allows contractors and employers to pay employees in service industries a sub-minimum wage, as long as the employee’s tips bring the wage up to the minimum wage level. Starting Jan. 30, 2022, the tipped minimum wage will be increased from the current rate of $7.65 per hour to $10.50 pe ....

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Biden Administration Orders $15 Minimum Wage for Federal Contractors | McGuireWoods LLP


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On April 27, 2021, President Biden signed an Executive Order (EO) requiring federal contractors performing service, construction or concession contracts to pay a $15 minimum wage to those employees who are working on such contracts.
As noted in the White House Fact Sheet, this EO will build on Executive Order 13658 (signed in February 2014), under which the government required federal contractors to provide a $10.10 minimum wage starting in in 2015. The EO imposes five substantive provisions with the stated goal of “promoting economy and efficiency” in federal contracting.
First, the EO increases the minimum wage for federal contractors. Beginning Jan. 30, 2022, all federal agencies will need to ensure that the $15-per-hour minimum wage is included in any new covered contract solicitations, and by March 30, 2022, all agencies will need to implement the minimum wage in new covered contracts. Additionally, ....

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