Sarah Block
Tue, 12/14/2021
Pursuant to a Department of Labor Final Rule implementing President Biden’s April 27, 2021 Executive Order 14026, which provides that the federal government’s procurement interests are promoted when it contracts with companies that adequately compensate their workers, federal contractors on four types of contracts will now be required to pay workers a minimum wage of at least $15 per hour, with increases to be published annually. This represents a significant increase to the minimum wage from the current rate of $10.95 per hour.
Specifically, workers on the following types of contracts will be entitled to the increased minimum wage: procurement contracts for construction covered by the Davis-Bacon Act, contracts covered by the Service Contract Act (including but not limited to contracts for fire and emergency services), federal property concessions contracts, and contracts related to federal property and the offering of services to the general public, federal employees and their dependents.
Although the Final Rule only applies to contracts entered into on or after January 30, 2022, including contract extensions or renewals of existing contracts on or after that date, the Final Rule strongly encourages federal agencies to begin requiring the increased minimum wage on any existing contracts and solicitations which were issued or entered into between the date of the executive order and January 30, 2022.
If you are a worker covered by one of these four types of federal contracts, your minimum wage rights may be affected. If you have questions about how this important change may impact you, or if you do not receive an increased minimum wage of at least $15 per hour beginning on January 30, 2022, please reach out to MSE for more information at info@mselaborlaw.com.
