$15/Hour Minimum Wage for Many Federal Contractors to Take Effect

Pillsbury Winthrop Shaw Pittman – New contracts and contract options/extensions executed after January 30, 2022 are subject to the new minimum hourly wage rate of $15/hour. Previously awarded contracts are subject to a minimum wage rate of $11.25 as of January 1, 2022 by operation of a prior Executive Order entered by President Obama in February 2014, until such time as an option or new contract subject to the $15 rate is executed. A new contract clause directs, as a condition of payment under the contract, that all workers must be paid the applicable, effective minimum wage, which will be subject to annual increases directed by the Secretary of Labor.