Economy

Biden Issues Executive Order to Raise Contract Workers’ Minimum Wage

The Biden administration would issue an executive order on Tuesday that will force all federal contractors to pay a $15 minimum wage to their employees who work for federal agencies.

Wage Hike to Go Into Effect on January 30, 2022

The latest order will take effect on January 30, 2022, and will affect workers ranging from cleaning and maintenance professionals. All federal agencies will have to incorporate the new standard and adjust the dollar amount yearly to account for inflation.

The measure is expected to affect hundreds of thousands of workers as it will also include contractor employees who receive tips. Tipped federal contractors earn $7.65 per hour, contrasting the $10.95 other employees make.

Reportedly, President Joe Biden told his administration to prepare this executive order on his second day in office. He then promised to present the measure within his first one hundred days.

According to a report issued by the Center for American Progress Action Fund, the $15 minimum wage increase for contract workers in the government would "help correct long-standing racial and gender disparities, since women, as well as African American and Latino workers, are overrepresented in many service contract industries."

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