$15 per hour minimum wage for workers on federal contracts

Posted on Jul 27 2021


The U.S. Department of Labor announced last week a Notice of Proposed Rulemaking to establish standards and procedures to implement and enforce Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” that President Joe Biden signed on April 27, 2021. 

This Executive Order will:

– Increase the minimum wage for workers performing work on or in connection with covered federal contracts to $15 per hour beginning Jan. 30, 2022.

– Continue to index the federal contract minimum wage in future years to an inflation measure.

– Eliminate the tipped minimum wage for federal contract workers by 2024.

– Ensure a $15 minimum wage for workers with disabilities performing work on or in connection with covered contracts.

-Restore minimum wage protections to outfitters and guides operating on federal lands.

“Executive Order 14026 improves the economic security of families and makes progress toward reversing decades of income inequality,” said Wage and Hour Division acting administrator Jessica Looman. “Our proposed regulations to implement President Biden’s executive order will ensure taxpayer dollars uphold the dignity of work, and provide a living wage to workers on federal contracts, including cleaning, maintenance, nursing and food service workers whose efforts are critical to the nation’s pandemic recovery.” 

Executive Order 14026 builds on Executive Order 13658, “Establishing a Minimum Wage for Federal Contractors,” signed by President Barack Obama in 2014. The earlier order increased the hourly minimum wage to $10.10 for workers performing on or in connection with covered federal contracts, beginning Jan. 1, 2015, and the hourly minimum wage increased annually thereafter based on inflation. The current federal contract minimum wage under Executive Order 13658 is $10.95 per hour. 

The department invites comments from the public on the proposed rule at www.regulations.gov. The comment period closes Aug. 23, 2021.

Anyone who submits a comment (including duplicate comments) should understand and expect that the comment, including any personal information provided, will become a matter of public record. The division will post comments without change at www.regulations.gov and include any personal information provided. The division posts comments gathered and submitted by a third-party organization as a group, using a single document ID number at the site. (PR)

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