On Monday, November 22, 2021, the U.S. Department of Labor’s Wage and Hour Division announced a final rule that increases the hourly minimum wage for certain federal contractors to $15 effective January 30, 2022.
Executive Order 14026 implements new requirements, including:
- Increasing the hourly minimum wage for certain federal contractors to $15 beginning January 30, 2022.
- Continues to index the minimum wage to an inflation measure in future years.
- Eliminates the tipped minimum wage for federal contractors by 2024.
- Ensures a $15 minimum wage for workers with disabilities performing work on or in connection with covered contracts.
- Restores minimum wage protections to outfitters and guides operating on federal lands.
The final rule becomes effective January 30, 2022.
Please visit www.dol.gov/agencies/whd/government-contracts/eo14026 for full details on Executive Order 14026.
This rule increases federal contracting economy and efficiency by boosting worker productivity, reducing turnover and absenteeism, and decreasing training/supervisory costs. Increased earnings growth resulting from EO 14026 will help address income inequality and create more income security for federal contract workers, their families and their communities.
You can watch Labor Secretary Walsh’s comments about the order HERE.