If you employ federal contract workers or you think you might in the future, you’ll want to read on. If you don’t, this does not apply to you.
Starting Jan. 30, 2022, the hourly minimum wage for new federal contract solicitations will be increased to $15, owing to a ruling by the U.S. Department of Labor that implements an executive order issued by President Biden. Beginning on March 30, 2022, the minimum wage must be implemented into new federal contracts. The higher wage must be in existing contracts when they are extended.
Biden signed the order on April 27, 2021, to raise the wage from $10.95 per hour. The tipped minimum wage of $7.65 per hour will increase to $7.90 on Jan. 1, 2022. The tipped minimum wage will be eliminated altogether by 2024.
The order, which applies nationwide, also includes a provision that would index the minimum wage to keep pace with the cost of living.
The Department of Labor estimates that more than 327,000 federal contractors will see a raise under this policy.
If, for some reason, you want to read the executive order, you can find it here.
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