Federal Contractors Must Pay $15 Minimum Wage
President Joe Biden issued an executive order Tuesday requiring federal contractors to pay a $15 minimum wage. The order will impact hundreds of thousands of workers, including cleaning staff, according to a White House press release.
The order doesn't change the minimum wage over night. All government agencies will have to provide a $15 minimum wage on new contracts solicitations starting Jan. 30, 2022. All agencies must provide a $15 minimum wage for all new contract work starting March 30, 2022.
Existing contracts will be impacted by the new minimum wage whenever an option to extend the contract is exercised.
The minimum wage won't just stop at $15. The requirement will change each year to reflect increased cost of living.
For more on the order, read the White House briefing here.
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