NBC reports that President Biden will sign an executive order on the 27th announcing an increase in the minimum hourly wage for federal contractors to $15. The Economic Policy Institute, a Washington think tank, estimates that the executive order will affect more than 390,000 low-paying federal contractors, including administrators, caretakers of veterans, troop restaurant employees, federal infrastructure construction and maintenance workers, etc. More, the average annual income increase of each contractor employee up to $ 3,100, including female employees, African-American and Hispanic employees to benefit the most. The current minimum hourly wage for federal contractors is $10.95.
The report pointed out that the minimum hourly wage of $15 for federal contractors will take effect in January 2022, and each government agency must implement the new minimum hourly wage system no later than March 30, 2022. The federal government has signed a contract with the contractor, the future renewal of the contract will adopt the new minimum hourly wage system.
Former President Barack Obama signed an executive order in 2014 stipulating that the minimum hourly wage for federal contractors is $10.10. After automatic inflation adjustment, the current minimum hourly wage is $10.95.
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