Quick Hit
On July 21, 2021, the Department of Labor (“DOL”) announced a proposed rule (the “Proposed Rule”) to implement President Biden’s Executive Order (the “Order”) requiring an increase of the minimum wage for certain employees of covered federal contractors and subcontractors to $15.00 per hour – except for tipped workers who must be paid $10.50 per hour – beginning January 30, 2022, with annual increases beginning in 2023 to account for inflation. With some exceptions, the requirement will apply to new contracts issued on or after January 30, 2022, or existing contracts renewed or extended on or after that date. The final rule will be issued by November 24, 2021.
Key Takeaways