Affects most new contracts, renewals, extensions of existing contracts
WASHINGTON — The U.S. Department of Labor today announced a final rule that implements Executive Order 14026 to increase the hourly minimum wage for employees on federal contracts beginning Jan. 30, 2022. President Biden signed the order on April 27, 2021.
The rule applies in all 50 states, the District of Columbia, and specified U.S. territories, and does the following:
“The workers helped by Executive Order 14026 and today’s final rule do essential work on our nation’s behalf. They build and repair the federal infrastructure, clean and maintain our national parks, monuments, and other federal facilities, care for our veterans, and ensure federal workers and military service members are provided with safe and nutritious food,” said U.S. Secretary of Labor Marty Walsh. “Implementing this Executive Order improves the economic security of these workers and their families, many of whom are women and people of color.”
Executive Order 14026 applies to new contracts and renewals and extensions of existing contracts beginning Jan. 30, 2022.
“In addition to promoting efficiency in federal contracting, the implementation of Executive Order 14026 has other benefits,” said Wage and Hour Division Acting Administrator Jessica Looman. “The final rule adds value for taxpayers by boosting worker productivity and reducing employee turnover and absenteeism. It also allows federal contractors to retain top talent, and reduce recruiting and training costs.”
Learn more about protections for federal contractors or more about the Wage and Hour Division. You may also call toll free at 866-4US-WAGE to speak directly and confidentially to a trained Wage and Hour Division professional. The division protects workers regardless of immigration status, and can communicate with workers in more than 200 languages.