Executive Order 14026 Raises Minimum Wage for Davis Bacon to $15 per hour
Final Rule: Increasing the Minimum Wage for Federal Contractors (Executive Order 14026)
On November 22, 2021, the Department announced publication of the final rule, “Increasing the Minimum Wage for Federal Contractors.” The Department has finalized regulations to implement Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” which was signed by President Joseph R. Biden Jr. on April 27, 2021. Executive Order 14026 states that the Federal Government’s procurement interests in economy and efficiency are promoted when the Federal Government contracts with sources that adequately compensate their workers. The Executive Order raises the minimum wage paid by those contractors to workers performing work on or in connection with covered federal contracts to $15.00 per hour, beginning January 30, 2022; and beginning January 1, 2023, and annually thereafter, an amount determined by the Secretary of Labor (Secretary). This final rule establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 14026, and is effective on January 30, 2022.
Based on a decision issued by the U.S. Court of Appeals for the Tenth Circuit on February 17, 2022, the final rule’s requirements are not currently being enforced as to “contracts or contract-like instruments entered into with the federal government in connection with seasonal recreational services or seasonal recreational equipment rental for the general public on federal lands” while an appeal is pending before that court. The final rule’s requirements remain in effect for all other contracts subject to the rule.