John Stewart
Wed, 09/01/2021
Starting January 30, 2022, minimum wage for federal contractors and subcontractors will be increased to $15.00 per hour. The change comes from a new, proposed rule from the Department of Labor (“DOL”), implementing President Joseph Biden’s April 27, 2021 Executive Order on Increasing the Minimum Wage for Federal Contractors. With the comments period close, a final rule is anticipated on or before November 24, 2021.
The new rule will cover those working under a “new contract” entered into, renewed, or extended after January 30, 2022, and will expand application of the federal minimum wage to previously excluded categories of federal contractors and subcontractors, including those working in Puerto Rico and other U.S. territories. For tipped contractors, the new minimum wage will be $10.50 per hour, beginning January 30, 2022, to increase to 85% of the standard federal minimum wage beginning January 1, 2023, and to 100% of the standard federal minimum wage beginning January 1, 2024. Additionally, if the tipped contractor receives insufficient tips to meet the standard minimum wage, the employer must increase the cash wage paid to cover the difference.
The $15.00 minimum wage proposed in the new rule is a nearly 50% increase from the existing standard ($10.95 per hour for federal contractors) and, starting January 1, 2023, the Secretary of Labor will increase the minimum wage for federal contractors and subcontractors each year, to correspond with the Consumer Price Index.
If you have questions about minimum wages required for federal contractors, or if you otherwise think you may not have been fully compensated for your work, please contact us at info@mselaborlaw.com.
