![[US] Minimum wage increase for federal contractors](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Minimum-Wage-Increase-Ahead-Ca-312544312_e55f662e-849b-4684-b329-b374c99affbe_1200x.jpg?v=1629197344)
The minimum wage for federal contractors in the US could potentially increase to $15.00 on January 30, 2022, up from the current minimum wage of $10.95, JD Supra reports.
President Biden issued Executive Order 14026, which seeks to give a $4.05 increase to the minimum hourly wage for all federal contractor employees. If the executive order is implemented:
1. On January 30, 2022, all federal agencies must incorporate the new minimum wage into new federal contract solicitations;
2. By March 30, 2022, all agencies must actually implement the new minimum wage into new contracts;
3. Agencies must implement the new minimum wage into existing contracts if the parties elect to extend or renew the contracts;
4. The new minimum wage must automatically be adjusted for inflation each year after 2022, among other requirements.
Executive Order 14026 also proposes the phasing out of the tipped minimum wage for federal contractors by January 1, 2024.
The U.S. Department of Labor recently published a notice of proposed rulemaking to carry out Executive Order 14026. The public reportedly has until August 27, 2021, to submit comments on the proposed rule.
Source: JD Supra
(Links via original reporting)
The minimum wage for federal contractors in the US could potentially increase to $15.00 on January 30, 2022, up from the current minimum wage of $10.95, JD Supra reports.
President Biden issued Executive Order 14026, which seeks to give a $4.05 increase to the minimum hourly wage for all federal contractor employees. If the executive order is implemented:
1. On January 30, 2022, all federal agencies must incorporate the new minimum wage into new federal contract solicitations;
2. By March 30, 2022, all agencies must actually implement the new minimum wage into new contracts;
3. Agencies must implement the new minimum wage into existing contracts if the parties elect to extend or renew the contracts;
4. The new minimum wage must automatically be adjusted for inflation each year after 2022, among other requirements.
Executive Order 14026 also proposes the phasing out of the tipped minimum wage for federal contractors by January 1, 2024.
The U.S. Department of Labor recently published a notice of proposed rulemaking to carry out Executive Order 14026. The public reportedly has until August 27, 2021, to submit comments on the proposed rule.
Source: JD Supra
(Links via original reporting)