Federal Contractor Minimum Wage

Status

On Nov. 22, 2021, DOL issued its final rule implementing President Biden’s Executive Order 14026, Increasing the Minimum Wage for Federal Contractors, which applies to all workers performing work on or in connection with covered federal contracts. Effective Jan. 30, 2022, the minimum wage increased to $15 per hour. On August 27, ABC submitted comments to the DOL in response to the proposed rule.

 

Desired Outcome

Most of ABC’s federal contractor members already pay the vast majority of their workers at wage rates higher than $15 per hour. However, ABC is concerned with the Biden administration’s decision to ignore Congress’s authority and not establish a market-driven approach to wage determination. This rulemaking will create unnecessary confusion and needlessly increase the compliance burden on ABC member contractors that build America’s infrastructure and perform other federal or federally assisted work.