President Joe Biden’s administration says hundreds of thousands of workers could see bigger paychecks starting next year due to its new minimum wage for federal contractors.
Monday’s Labor Department announcement stated that it has finalized regulations that set a minimum $15 per hour wage for federal contract workers. Under contracts that are renewed or implemented beginning Jan. 30, 2022, firms providing services for the U.S. government must pay their workers at least $15 an hour.
return HPGam.render(“inline-1”, “entry_paragraph_1”, false);
Minimums for contractors are already set by the federal government through prevailing wage law. But Jessica Looman, acting administrator for the Labor Department’s Wage and Hour Division, said on a press call Monday that there are 327,000 workers under federal contracts who are currently entitled to less than $15 per hour.
The new regulations are expected to result in many workers getting raises. Looman stated that restaurant employees, child care workers, and maintenance workers will be the most likely recipients of pay increases.
“The bottom line is we really want to make sure we are leveraging the purchasing power of the federal government to ensure fair wages for workers across the country,” Looman said.
Biden had signed an executive orderDirecting the Labor Department back to April in the development of the regulation.