Tenth Circuit Gives Biden Administration Major Win In Contractor Minimum Wage Case

On April 30, the U.S. Court of Appeals for the Tenth Circuit affirmed a lower court's ruling denying a bid from two outdoor recreation companies asking for a preliminary injunction on a 2021 Department of Labor (DOL) rule that increased the minimum wage paid by government contractors to $15 an hour.

The decision was a boon for the Biden administration as it represents another cleared hurdle for the rule and signifies widening discretion given to the president to make changes under the Federal Property and Administrative Services Act (FPASA).

Federal Property and Administrative Services Act

The FPASA was enacted in 1949 to "provide the Federal Government with an economical and efficient system for . . . [p]rocuring and supplying property and nonpersonal services." The Act authorizes the president to "prescribe policies and directives that the President considers necessary to carry out" the FPASA and that are "consistent with" the Act. Therefore, to fall within