Starting January 30, 2022, all government contracts (new or extended) will need to incorporate a $15 minimum wage requirement for employees. The fact sheet provided by the White House can be found here. By requiring federal contractors to pay at least $15 per hour, President Biden will raise the pay for hundreds of thousands of workers. The new executive order will expand upon the Federal Minimum Wage Executive Order 13658 signed by President Obama in February 2014 which raised the minimum wage to $10.10 in January 2015 and has increased to $10.95 through December 31, 2021. The new Executive Order states that the minimum wage amount will increase each year after, to an amount determined by the Secretary of Labor. If you have government contracts, you may need to start budgeting now to increase pay for workers to at least $15 per hour starting January 30, 2022.
