Federal Contractors Must Pay All Employees at Least $15.00 per Hour January 30, 2022

On April 27, 2021, President Biden issued an executive order requiring federal contractors to pay a $15 minimum wage to those working on federal contracts, including disabled employees. The minimum wage for workers performing work on covered federal contracts currently is $10.95 per hour, and the tipped minimum wage is $7.65 per hour. The order will increase the hourly minimum wage for federal contractors to $15 per hour starting January 30, 2022. By March 30, 2022, all agencies will need to implement the minimum wage into new contracts.

The order will also continue to index the minimum wage to an inflation measure so that every year after 2022, it will be automatically adjusted to reflect changes in the cost of living and eliminate the tipped minimum wage for federal contractors by 2024. Outfitters and guides operating on federal lands will no longer be exempt because this order revokes President Trump’s executive order 13838, “Exemption From Executive Order 13658 for Recreational Services on Federal Lands.”

The U.S. Department of Labor’s Wage and Hour Division and the Federal Acquisition and Regulatory Council will engage in rulemaking to implement and enforce this Executive Order.