On July 22, the Department of Labor published a proposed rule to increase the minimum wage for federal contractors to $15 per hour.
This proposed rule is designed to implement an Executive Order issued by President Biden in April directing DOL to increase the minimum wage for federal contractors by March 2022. Currently, the federal contracting minimum wage is $10.95 per hour and has been in place since 2015.
Under the proposed rule, the new minimum wage would apply to federal contracts based on solicitations issued on or after Jan. 30, 2022, and entered into on or after March 30, 2022. It also would apply to subcontracts that fall under a prime contract. Additionally, the proposed regulation would continue to index the minimum wage for federal contractor work of $15 per hour for inflation.
The DOL is accepting public comment regarding the proposed rule until Aug. 23. View the announcement and a copy of the proposed rule as published in the Federal Register.
