About 300,000 workers to get a raise next year as higher minimum wage kicks in

More than 300,000 maintenance, security and child care workers will get a raise starting next year under a new $15 an hour minimum wage for federal contractors, the Labor Department said Monday. The new compensation scheme stems from an April executive order by President Joe Biden that raises the pay of federal workers.

The $15 baseline wage for federal contractors also will be indexed to inflation and rise in subsequent years. The new pay floor takes effect for any federal contract starting on or after January 30, 2022.

Under the new rule, outfitters and guides on federal lands, as well as some workers with disabilities who can be paid less than the minimum wage, will have their pay raised to $15 an hour, labor officials said. Starting in 2024, tipped workers on federal contracts will also make at least that amount. Currently, such workers can be paid less than others because employers assume that tips will make up the difference.