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On April 27, 2021, President Biden issued an Executive Order under his authority as President and through the Federal Property and Administrative Services Act, 40 U.S.C. 101
et seq., increasing the minimum wage paid to workers employed for federal government contracts and subcontracts.
1 Here are the main points of the Order that will directly affect federal contractors:
Beginning on January 30, 2022, the standard minimum wage for federal government contractors will be at least $15 per hour; and beginning on January 1, 2023, the Secretary of Labor (Secretary) will determine the minimum wage on an annual basis, which will be published 90 days before that new minimum wage is to take effect.
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On April 27, 2021, President Biden issued Executive Order 14026 requiring contractors to pay a minimum wage of $15.00 per hour beginning January 30, 2022, on contracts entered into, contracts renewed or extended, and options exercised on or after January 30, 2022.
The new Executive Order is patterned on a February 12, 2014, Executive Order issued by President Obama which affected the same group of workers, and increased the then minimum wage for federal contract employees to $10.10 (a redline is here). Implementing Regulations are due by November 24, 2021.
To Whom Does the Executive Order Apply?
The Order applies to all federal contractor employees working on or in connection with a federal government: procurement contract for services or construction; contract for services covered by the Service Contract Act; concessions contract; or contract in connection with Federal property or lands and related to offering serv