November 29, 2021

$15 minimum wage for federal contractors will take effect Jan. 30.

Employees of federal contractors will make at least $15 per hour under a final rule that the Labor Department announced Monday, providing a likely wage increase for over 300,000 workers, according to administration estimates.

The wage floor will affect contracts that are executed or extended beginning on Jan. 30, 2022. The current minimum wage for contractors is $10.95 under a rule enacted by the Obama administration in 2014 and is scheduled to rise to $11.25 on Jan. 1. Both rules require that the minimum wage increase over time to account for inflation.

Paul Light, an expert on the federal work force at New York University, has estimated that five million people work for employers that have federal contracts, including security guards, food workers, janitors and call center workers, but most already make more than $15 per hour. The rule will also apply to construction contracts entered into by the federal government.

Labor Secretary Martin J. Walsh said in a statement that the rule “improves the economic security of these workers and their families, many of whom are women and people of color.”

Article source: https://www.nytimes.com/2021/11/22/business/economy/minimum-wage-federal-contractors.html

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