January 31, 2022
Courtney Buble
This comes as a “record number” of states and localities are increasing their minimum wages in 2022.
President Biden’s $15 hourly minimum wage for employees of federal contractors officially took effect on Sunday.
Biden announced this initiative shortly after taking office in January 2021, then followed up with an executive order in April. The final regulation, which was issued in November, will be indexed for inflation. It also eliminates the tipped minimum wage for federal contractors by 2024, ensures workers with disabilities don’t earn a sub-minimum wage and protects outfitters and guides working on federal lands, reversing a policy from the Trump administration.
“The $15 minimum wage required by Executive Order 14026 applies only to contracts entered into, renewed or extended (pursuant to an exercised option or otherwise) on or after Jan. 30, 2022,” Labor Department spokesperson Edwin Nieves told Government Executive on Thursday. “Despite recent litigation, the DOL is proceeding with the implementation of [the executive order].”
Government Executive reported on one legal challenge in December. The U.S. District Court for the District of Colorado denied the plaintiff’s request for a preliminary injunction on the rule on Jan. 24 and they appealed that decision last Wednesday.
“Contracting agencies will need to take appropriate implementing steps to ensure that covered contracts comply with the executive order’s requirements by, for example, incorporating the relevant contract clause into covered contracts,” Nieves continued.