Minimum wage rates are on the rise throughout the country and the federal contractor rate is no exception. On November 22, 2021, the U.S. Department of Labor published the final regulations implementing President Biden’s Executive Order (EO) 14026. As previously reported here, the EO raises the hourly minimum wage paid by those contractors to workers performing work “on or in connection with” covered federal contracts from $11.25 to $15.00 per hour, beginning January 30, 2022.
The order builds on the foundation established by Executive Order 13658, “Establishing a Minimum Wage for Contractors,” signed by President Obama on February 12, 2014, in several notable ways. E.O. 14026 raises the minimum wage to $15.00 an hour, defines “new contract” differently, and applies to a broader geographic area, among other things.
“New contracts” is now defined to include contracts that are renewed, are extended, or an option is exercised on or after January 30, 2022. Specifically, covered contracts include:
Procurement contracts for construction covered by the Davis-Bacon Act (DBA)
Service Contract Act (SCA) covered contracts
Concessions contracts – meaning a contract where the federal government grants a right to another entity to use federal property to furnish services – and includes contracts principally for the furnishing of food, lodging, automobile fuel, souvenirs, newspaper stands, and recreational equipment to the general public or the government and its personnel
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