The U.S. Department of Labor has announced a Notice of Proposed Rulemaking to establish standards and procedures to implement and enforce Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” signed by President Biden on April 27, 2021.
This Executive Order and its enacting regulations 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.
As AGC previously reported, Executive Order 14026 builds on Executive Order 13658, “Establishing a Minimum Wage for Federal Contractors,” signed by President 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 August 23, 2021.
For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382 or Jordan Howard at Jordan.howard@agc.org or 703-837-5368.