Ninth Circuit Deflates Contractor Minimum Wage Mandate

On November 5, the Court of Appeals for the Ninth Circuit held that the president lacks the authority under the Federal Property and Administrative Services Act (FPASA or Act) to impose a $15 minimum wage on federal contractors and remanded the case to the district court to reconsider in light of the Ninth Circuit's decision. For decades administrations have used FPASA to implement social policy under the guise of government procurement rules, and courts have typically upheld these actions.

While the recent Ninth Circuit decision does not have immediate effect as the case was remanded to the district court for further proceedings to determine whether an injunction is warranted, it does signal that the era may be coming to an end. The decision has created a split among circuit courts that increases the likelihood of Supreme Court involvement, which would provide contractors with much-needed guidance as to the limits of presidential authority under FPASA.