Minimum Wage To Increase For Federal Contractors

Volume: 20 | Issue: 61
September 21, 2021

The U.S. Department of Labor has announced an annual update to the minimum wage for workers performing work on or in connection with covered federal contracts. Beginning January 1, 2022, the minimum wage for such workers increases from $10.95 to $11.25 per hour, while the minimum wage for tipped employees working in or in connection with federal contracts will increase to $7.90 per hour. These increases stem from an Executive Order issued by President Obama in 2014.

President Biden issued Executive Order 14026 in April 2021 to increase the minimum wage to $15.00 for federal contractors. This Order will apply to covered contracts that are entered into on or after January 30, 2022, or that are renewed or extended on or after that date. The DOL is currently in the process of preparing regulations to implement Order 14026. Stay tuned for more information on these pending regulations. 

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.

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