Increasing the Minimum Wage for Federal Contractors
Headline: Federal Contractors Required to Pay Workers at Least $15 Hourly
What it does: Agencies must ensure contracts require contractors to pay workers at least $15 per hour and follow annual CPI-based increases.
- Raises minimum hourly pay to $15 for workers on many federal contracts.
- Sets phased increases and a tipped-worker cash wage schedule through 2024.
- Requires contract clauses and enforcement steps, adding compliance duties for contractors.
Summary
This order requires contractors who work on federal contracts to pay their workers at least $15.00 per hour starting January 30, 2022, with annual cost-of-living increases set by the Secretary of Labor and specific phased rules for tipped workers through 2024. It applies to new and renewed procurement, service, construction, and concession contracts covered by federal wage laws. The stated purpose is to improve government procurement efficiency by boosting worker health, morale, and productivity.
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