Biden Announces $15 Min Wage for Fed Contractors

April 28, 2021

On April 27, President Joe Biden issued an executive order requiring federal contractors to pay a $15 minimum wage to workers who are working on federal contracts.

Specifically, the executive order will:

  • Increase the minimum wage for federal contractors to $15 per hour. Starting Jan. 30, 2022 all agencies will need to incorporate a $15 wage in new contract solicitations, and by March 30, 2022, all agencies will need to implement the new minimum wage into new contracts. The new minimum wage also will need to be implemented into existing contracts when they are extended.
  • Continue to index the minimum wage for inflation– every year after 2022 the wage will be automatically adjusted to reflect the changes in the cost of living.
  • Eliminate the tipped minimum wage by 2024 for federal contractors, to ensure that tipped employees on federal contracts will earn the same minimum wage as other federal contract employees.
  • Ensure that the $15 minimum wage is extended to federal contract workers with disabilities.
  • Revoke President Trump’s executive order 13838 “Exemption From Executive Order 13658 for Recreational Services on Federal Lands,” restoring minimum wage protections to outfitters and guides operating on federal lands.

Currently, the minimum wage for federal contract workers is $10.95 per hour, and the tipped minimum wage is $7.65 per hour.

The White House released a fact sheet outlining the details of the executive order.