In April 2021, President Biden issued Executive Order (E.O.) 14026, Increasing the Minimum Wage for Federal Contractors, directing an increase in the hourly minimum wage paid by contractors to workers under federal contracts governed by the Fair Labor Standards Act, the Service Contract Act, or the Davis-Bacon Act to $15 per hour, effective Jan. 30, 2022. See May 2021 GT Alert. On Jan. 26, 2022, the Department of Defense (DoD), General Services Administration (GSA), and NASA issued an interim rule amending the Federal Acquisition Regulation (FAR) to implement EO 14026 (Interim Rule) (87 FR 4117). This GT Alert provides a summary of the key requirements of the Interim Rule and the associated FAR amendments.
The Interim Rule implements amendments to numerous FAR provisions to make minor conforming changes, including replacing the reference to the previous E.O. on federal contractor minimum wage requirements (E.O. 13658) with E.O. 14026 or adding references to E.O. 14026, as appropriate, throughout FAR parts 22 and 52. More importantly, the Interim Rule implements the key substantive changes to the FAR provisions discussed below.
Throughout FAR subpart 22.19 and FAR clause 52.222–55, the Interim Rule replaces the previous minimum wage of $10.10 established by E.O. 13658 with the minimum wage of $15 specified by E.O. 14026. This change effectively increases the hourly minimum wage paid to workers performing work on or...
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