Beginning January 30, 2022, all prime contractors and subcontractors doing work on a government contract will be required to pay workers at least $15 per hour, based on a recent executive order.
The executive order does not stop there, beginning in 2023 the wage will go up annually. When can we expect formal guidance to come out, and what other items are found in the text?
The Department of Labor annually increases the minimum wage for federal contractor employees in accordance with Executive Order 13658. It recently noticed, via the Federal Register, that the 2020 minimum wage for most of these employees will increase from $10.60 to $10.80. For tipped employees, the cash wage will increase from $7.40 to $7.55.
With a potential government shutdown looming, this week’s top news stories focus on the effects that a shutdown may have on government contractors. But the shutdown isn’t the only government contracting news out there. This week’s SmallGovCon Week In Review also includes stories on the government’s new minimum wage and sick leave policies, among others.