Companies doing business with the federal government have faced greater legal and regulatory changes than the average employer outside of health care under President Joe Biden, with more developments potentially ahead.
Quickly out of the gate, Biden ordered the U.S. Department of Labor to mandate that workers on federal contracts are paid a minimum of $15 an hour, a boost that took effect Jan. 30. The president’s order came after his administration failed to lift the federal minimum wage to $15 an hour economy-wide.
“The government does have a little more leverage with government contractors, with pushing more progressive policies,” said Erin Connell, a partner at Orrick Herrington & Sutcliffe LLP in San Francisco. “They’re choosing to do business with the federal government.”
The Labor Department office that polices government contractors wasted little time in ramping up its enforcement of anti-discrimination laws under Biden. Practitioners noted the agency was auditing contractors with greater intensity. The office also altered how contractors are required to handle affirmative action plans, enhancing accountability.
On top of those changes, contractors have had to prepare for a vaccine mandate that would apply to their workforces, though it isn’t being enforced as litigation plays out in appellate courts.
Several former Labor Department...
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