On March 14, as part of an extensive rollback of Biden-era mandates, President Donald Trump rescinded Executive Order (EO) 14026. Issued in April 2021, former President Joe Biden’s order required that the minimum wage for federal contractors be raised to $15 per hour, with scheduled increases. The mandate expanded upon former President Barack Obama’s original order, EO 13658, from 2014. As of this month, federal contractors are required to pay their employees a minimum wage of $17.75, reflecting the periodic adjustments over the past four years. Trump’s new order would see that sum significantly reduced.
For years, there has been debate between Republicans and Democrats about whether there should be a minimum wage for federal contractors and whether it is within the president’s authority to impose a minimum wage. When Biden issued EO 14026, the ambitious order immediately faced legal challenges, and indeed, much of that litigation has lingered in the appellate courts (and is now moot).
When Trump entered office earlier this year, “the thinking was: Would [the president] defend President Biden’s minimum wage, or would he essentially revoke it and say, ‘We’re not going to defend it’?” said Craig Leen, an attorney with K&L Gates based in Washington, D.C., who is the former director of the Office of Federal Contract Compliance Programs.
The strategic rationale behind the president’s decision remains a matter of speculation. It is Leen’s opinion that because Trump came into...
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