With his campaign for a USD15 federal minimum wage stalled, US President Joe Biden is moving to boost the hourly pay of hundreds of thousands of federal contractors.
Accordingly, Biden is set to sign an executive order on Tuesday requiring employers to pay a USD15 minimum wage to workers covered under a federal contract. Right now, the minimum wage for workers under federal contact is USD10.95 per hour.
All federal agencies will be required to incorporate a USD15 minimum wage in new contract solicitations starting Jan. 30, 2022. A USD15 minimum wage must be included in all federal contracts by March 30.
The move will increase the current minimum wage of USD10.95 by nearly 37% by March of next year and continue to tie future increases to inflation. It will apply to federal workers from cleaning and maintenance staff to food service contractors and laborers, sweeping in tipped workers who were previously left out of the last increase under former President Barack Obama.
A senior administration official who described Biden’s plan to reporters on Monday said the higher wage would boost the pay for workers who are considered critical to federal government functions, such as cleaning professionals and maintenance workers, nursing assistants who care for the nation’s veterans, cafeteria and food service workers who provide meals to military members, and laborers who build and repair federal infrastructure.
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