DOL’s $15 Hourly Minimum Wage Rule for Federal Contractors Takes Effect

The Department of Labor’s (DOL) final rule increasing the hourly minimum wage of federal contractors to $15 took effect on January 30, 2022. The rule implements the Executive Order on Increasing the Minimum Wage for Federal Contractors (EO 14026) that was signed by President Biden last April.

In addition to raising the minimum wage for certain contractors, the rule:

Indexes the minimum wage to an inflation measure in future years. 

Eliminates the tipped minimum wage for federal contractors by 2024. 

Ensures a $15 minimum wage for workers with disabilities performing work on or in connection with covered contracts. 

Restores minimum wage protections to outfitters and guides operating on federal lands. 

The rule may affect IWLA members with federal contracts. For more information about the DOL’s implementing rule and EO 14026, please click here.

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