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On April 27, 2021, President Biden issued a new Executive Order that raises the federal contractor minimum wage to $15 per hour, from the current $10.95 per hour, starting January 30, 2022.
Biden’s new Executive Order is nearly a word for word retread of the Obama Administration’s Executive Order 13658 (originally setting a $10.10 federal contractor minimum wage), with some notable exceptions:
The federal contractor minimum wage is raised to $15 per hour starting January 30, 2022
The current tipped worker federal contractor minimum wage, setting a lower hourly minimum wage just for tipped workers, is phased out by January 1, 2024; and
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On April 27, 2021, President Biden issued an executive order (the “Order”) increasing the minimum wage for Federal Government contractors and subcontractors from $10.95 per hour to $15.00 per hour. The text of the Order is available here. This is the most significant increase in the minimum wage for contractors since the Obama administration issued Executive Order No. 13658 (“EO 13658”) in 2014, which raised the minimum wage from $7.25 to $10.10.
Aside from the increased minimum wage, the Biden Order is nearly identical to EO 13658. As a result, although the new Order directs the Department of Labor (“DOL”) to issue regulations implementing the Order, it appears that 29 C.F.R. part 10 and Federal Acquisition Regulation (“FAR”) subpart 22.19, which were promulgated to implement EO 13658, can also implement the new Order without substantial revision.
President Biden signed an executive order (EO) on January 25, 2021, titled “Ensuring the Future Is Made in All of America by All of America’s Workers.” Referring broadly to all.