ARTICLE · 03 MAY 2021

Biden Issues Executive Order Increasing Minimum Wage For Contractor Employees To $15/Hour

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Building on a previous executive order (EO) issued by President Barack Obama that increased the minimum wage for contractor employees to $10.10...

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Building on a previous executive order (EO) issued by President Barack Obama that increased the minimum wage for contractor employees to $10.10 (and automatically increased every year to keep pace with inflation), President Joe Biden issued a new EO that increases the minimum wage for those employees to $15 beginning on Jan. 30, 2022, and adjusts annually to the Consumer Price Index (CPI).

While the new minimum wage must be codified into regulations in order to be effective, the EO requests that agencies take more immediate action to require contractors to pay the higher wage. Sec. 9(c) of the EO provides that "For all existing contracts and contract-like instruments, solicitations issued between the date of this order and the effective dates set forth in this section, and contracts and contract-like instruments entered into between the date of this order and the effective dates set forth in this section, agencies are strongly encouraged, to the extent permitted by

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