Biden To Mandate $15 Minimum Wage For Federal Contract Workers

By ABC Audio
Posted on 04/27/21 | News Source: WBAL

Although U.S. President Joe Biden was unable to get a $15 minimum wage provision included in his COVID-19 relief package, he's making good on that campaign promise for one group of people: federal contract workers.

Biden will sign an executive order on Tuesday increasing the minimum wage to $15 an hour for hundreds of thousands of people who are working on federal contracts.

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However, the raise won't kick in immediately. The executive order states that all federal agencies will need to implement the $15 minimum wage in new contracts by March 30, 2022. It's difficult to amend existing contracts, but wages can be changed when they are up for annual review.

Currently, the minimum wage for federal contract workers is $10.95. It was raised to $10.10 under U.S. President Barack Obama in 2014 and later indexed to inflation.

Many federal contract workers make more than the current minimum wage. But the pay bump will give an extra boost to lower-wage workers like cleaning and maintenance professionals, food service employees on military bases and in government buildings, as well as nursing assistants who care for the nation's veterans. Read more at WBAL