![[US] Federal contractor minimum wage rises to $15 in January](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-African-American-Hipster-Waitr-381269255_1200x.jpg?v=1637707340)
On November 22, the U.S. Department of Labor announced that federal contractors will be guaranteed an hourly minimum wage of at least $15 in all new contracts with government agencies beginning from January 30, 2022, CNBC reports.
President Biden signed the executive order lifting the hourly rate for federal contractors from $10.95 back in April. The change is expected to impact approximately 327,000 workers, including food-service employees and nursing assistants who currently take home less than $15 an hour.
The executive order will also mean an end to the tipped minimum wage for federal contractors by 2024, it is currently $7.65 per hour.
Many workers will have to wait longer than the new year to receive the pay rise. The increased wage is a new contract requirement only and therefore will not apply to workers on existing federal agreements, which can be three years or five years long.
However, officials at the Labor Department celebrated the raise on a November 22 call with reporters.
“It’s a step in the right direction,” Jessica Looman - acting administrator of the Department of Labor’s Wage and Hour Division - said.
“Bottom line, we really want to make sure we’re leveraging the purchasing power of the federal government to ensure fair wages for workers across the country and in the territories.”
Source: CNBC
(Link via original reporting)
On November 22, the U.S. Department of Labor announced that federal contractors will be guaranteed an hourly minimum wage of at least $15 in all new contracts with government agencies beginning from January 30, 2022, CNBC reports.
President Biden signed the executive order lifting the hourly rate for federal contractors from $10.95 back in April. The change is expected to impact approximately 327,000 workers, including food-service employees and nursing assistants who currently take home less than $15 an hour.
The executive order will also mean an end to the tipped minimum wage for federal contractors by 2024, it is currently $7.65 per hour.
Many workers will have to wait longer than the new year to receive the pay rise. The increased wage is a new contract requirement only and therefore will not apply to workers on existing federal agreements, which can be three years or five years long.
However, officials at the Labor Department celebrated the raise on a November 22 call with reporters.
“It’s a step in the right direction,” Jessica Looman - acting administrator of the Department of Labor’s Wage and Hour Division - said.
“Bottom line, we really want to make sure we’re leveraging the purchasing power of the federal government to ensure fair wages for workers across the country and in the territories.”
Source: CNBC
(Link via original reporting)