DOL Finalizes Increase to Minimum Wage for Federal Contractors
The U.S. Department of Labor (DOL) announced a final rule that implements Executive Order 14026 to increase the hourly minimum wage for employees on federal contracts beginning January 30, 2022.
The rule applies in all 50 states, the District of Columbia, and specified U.S. territories, and does the following:
- Increases the hourly minimum wage for workers performing work on or in connection with covered federal contracts to $15 beginning January 30, 2022.
- Continues to index the federal contract minimum wage in future years to inflation.
- Ensures a $15 minimum wage for workers with disabilities performing work on or in connection with covered contracts.
President Biden’s Executive Order 14026 applies to new contracts, and renewals and extensions of existing contracts, beginning January 30, 2022.