Biden Signs Executive Order Requiring Federal Contractors to Pay a $15 Minimum Wage

President Biden signed an executive order on Tuesday directing federal contractors to pay a $15 minimum wage for their workers starting next year. 


Shortly after coming into office, Biden directed his administration to work on this executive order, which was part a slew of actions aimed at empowering the federal workforce and providing Americans with economic relief. He said he hoped this would happen within his first 100 days, which ends on Friday, April 30. 


“This executive order will promote economy and efficiency in federal contracting, providing value for taxpayers by enhancing worker productivity and generating higher-quality work by boosting workers’ health, morale and effort,” said a fact-sheet from the White House. There are “hundreds of thousands of workers who are working on federal contracts,” who “are critical to the functioning of the federal government: from cleaning professionals and maintenance workers who ensure federal employees have safe and clean places to work, to nursing assistants who care for the nation’s veterans, to cafeteria and other food service workers who ensure military members have healthy and nutritious food to eat, to laborers who build and repair federal infrastructure.”


The executive order says that starting on January 30, 2022, all agencies have to incorporate the new minimum wage into their contract solicitations. By March 30, 2022, they have to implement the $15 minimum wage into new contracts. “Agencies must also implement the higher wage into existing contracts when the parties exercise their option to extend such contracts, which often occurs annually,” said the fact-sheet. Every year after 2022, ..

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