The Biden administration has the authority to increase wages for federal contractors, which will mean greater income and equality for those who do business with the government, a coalition of unions and civil rights groups told a Texas federal court.
The coalition led by the Texas AFL-CIO, and including the National Employment Law Project, Communications Workers of America, and the Economic Policy Institute, filed a friend-of-the-court brief Monday asking the U.S. District Court for the Southern District of Texas to grant the government’s motion to dismiss. The Justice Department has asked the federal court to toss a challenge from Texas, Mississippi, and Louisiana, which sued to block an executive order from President Joe Biden.
The order requires federal contractors to raise their minimum wage to $15. The states said in the lawsuit filed in February that Biden’s directive is unlawful and shows “little apparent regard for the widespread havoc on the economy that will result.”
The arguments point to the minimum wage hike as industries around the country face a labor shortage, and multiple challenges to the executive order are pending in court, drawing lines over whether the raise will hurt or help the economy. Roughly a fifth to a quarter of companies in the U.S. receive federal contracts from the government, including Lockheed Martin Corp., Microsoft Corp., Alphabet Inc.‘s...
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