President Biden To Sign Order To Raise Minimum Wage For Federal Contractors

President Biden is expected to use his executive powers to raise the minimum wage for federal contractors to $15 an hour. The order is expected to be delivered today and will take effect in early 2022. It will boost the current wage of $10.95 an hour, eliminate the minimum wage of $7.65 an hour by 2024 and ensure federal contract workers with disabilities also receive a minimum of $15 an hour. It will affect hundreds of thousands of people. Agencies will need to incorporate the $15 wage in new contract solicitations beginning January 30th and implement the threshold in new contracts by March 30th. Agencies must also implement the higher wage in existing contracts when they are extended.

The wage increase will be adjusted yearly based on inflation. According to administration officials the effort won’t lead to reduced employment or hurt the businesses that hire federal contractors and won’t result in increased costs for taxpayers. The wage will increase worker productivity and generate higher-quality work. It will also help reduce decades of income inequality and improve economic security for many families.