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Biden Administration Raises Minimum Wage For Federal Government Contractors As Congress Mulls $2 Billion Infrastructure Plan | Vinson & Elkins LLP


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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. ....

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