Today the U.S. Department of Labor issued a Notice of Proposed Rulemaking (you can find it here https://public-inspection.federalregister.gov/2021-15348.pdf ) that establishes standards to enforce President Biden’s Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors”.
EO 14026 and the DOL Rules will directly impact federal contractors in several ways:
- Effective January 30, 2022, the minimum wage for workers on covered federal contracts will increase to $15 per hour,
- Ensure that disabled workers on federal contracts receive at least $15 an hour,
- By 2024 eliminate the tipped minimum wage for federal contract workers, and
- The federal contract minimum wage will be indexed to inflation.
As a comparison, the current federal contract minimum wage is $10.95 per hour.
Since several Democrat state Attorneys General have brought criminal charges against Federal Contractors for what would have previously been classified as innocent mistakes, Federal Contactors must make doubly sure that they are complying with all Rules and Regulations regarding the compensation of workers on these types of projects.