Federal Contract Employees Get Minimum Wage Boost

Photo by Josue Isai Ramos Figueroa on Unsplash

In this news release today, the U.S. Department of Labor announced that the minimum wage for workers on U.S. federal contracts would rise to $15.00 per hour beginning January 30, 2022. Many federal contract workers won’t see these changes for up to another year, as wages remain locked for the federal contractor’s current contract duration. Still, as existing contracts renew or extend, the new wage rate will become effective. The new minimum will become effective immediately for contracts beginning on or after January 30, 2022.

Although several states and localities have minimum wage raises planned or proposed for 2022, few are as high as $15.00 per hour. This change should help federal contractors become more competitive in the U.S. labor market and improve retention. Do you think this change will spark support for an increased federal minimum wage for non-federal contractors?