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On November 22, 2021, the U.S. Department of Labor’s Wage and Hour Division announced a final rule that increases the hourly minimum wage for certain federal contractors to $15 effective January 30, 2022.  According to the Department of Labor, this rule increases federal contracting economy and efficiency by boosting worker productivity, reducing turnover and absenteeism, and decreasing training/supervisory costs. Increased earnings growth resulting from EO 14026 will help address income inequality and create more income security for federal contract workers, their families and their communities.

Executive Order 14026 implements new requirements, including:  

•             Increasing the hourly minimum wage for certain federal contractors to $15 beginning January 30, 2022. 

•             Continues to index the minimum wage to an inflation measure in future years. 

•             Eliminates the tipped minimum wage for federal contractors by 2024. 

•             Ensures a $15 minimum wage for workers with disabilities performing work on or in connection with covered contracts. 

•             Restores minimum wage protections to outfitters and guides operating on federal lands.

For more information about the final rule, please click here. If you have questions about how this development might affect your organization, please contact Joseph B. Carini, Genevieve M. LeFevour, Christopher J. Carlos or Katie E. Gorrie.  

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