Minimum Wage To Increase For Federal Contractors
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.
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