Biden Directs Agencies to Address Economic Relief, Including Contractor Minimum Wage

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Shortly after taking office, President Biden initiated a series of executive actions to provide economic relief in response to the COVID-19 pandemic. Most of the steps address the financial crisis by providing nutritional assistance, improving economic assistance delivery, more significant support for veterans, addressing workplace safety, and improving inter-agency benefit coordination.

 

While most COVID relief actions have a broad impact, one, in particular, is designed to assist federal government contractor employees. President Biden directed “his administration to start the work that would allow him to issue an Executive Order within the first 100 days that requires federal contractors to pay a $15 minimum wage and provides emergency paid leave to workers.”

 

Since a federal contractor minimum wage already exists, set at $10.95 per hour starting January 1, 2021 and administered by the U.S. Department of Labor Wage and Hour Division, the new direction will likely result in an amendment of that policy and a phase-in of the higher rate. The fact sheet describing the executive actions can be reviewed here.