Federal Contractor Minimum Wage to $15 in January


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President Biden's federally mandated minimum wage increase from $10.95 to $15 will be implemented by January 30th, 2022. This final rule will have minimal impact on construction jobs as most construction companies with federal contracts pay wages higher than the mandate.


The Department of Labor tweeted earlier this week that the workers benefitting the most by the increase were women, Latinos, and African Americans. The agency inferred that the childcare, restaurant, and maintenance industries in states and localities that have not seen recent wage increases, would benefit the most.


"We want to make sure we are leveraging the buying power of the federal government to ensure fair wages for workers. Because we are spending dollars on federal contracts, it really is our job to ensure wages are fair," said Jessica Looman, acting administrator of DOL’s Wage and Hour Division.


A Department of Labor fact sheet on the rule noted that certain contracts will be excluded from the requirements: grants within the meaning of the Federal Grant and Cooperative Agreement Act, certain procurement contracts for construction that are not subject to the Davis-Bacon Act, and certain contracts for services that are exempted from coverage under the Service Contract Act or its implementing regs, among others.


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