On April 27, President Biden issued an executive order requiring federal contractors to pay a $15 per hour minimum wage to employees working on federal contracts [Fact Sheet: Biden-Harris Administration Issues an Executive Order to Raise the Minimum Wage to $15 for Federal Contractors, 4-27-21].
The executive order will:
- Increase the hourly minimum wage for federal contractors to $15 per hour from $10.95 per hour beginning on January 30, 2022.
- Continue to index the minimum wage to an inflation measure so it will adjust annually
- Eliminate the tipped minimum wage for federal contractors by 2024.
- Restore minimum wage protections to outfitters and guides operating on federal lands, which was revoked by President Trump.
The U.S. Department of Labor’s Wage and Hour Division will create rules to implement and enforce the executive order.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.
