Biden To Sign $15 Minimum Wage Executive Order For Federal Contractors

The president's plan will hike the federal government's wage floor significantly in 2022.

President Joe Biden is following through on a campaign pledge that’s expected to boost hourly pay for hundreds of thousands of workers. Senior administration officials said the president plans to sign an executive order Tuesday to increase the minimum wage for workers under federal contracts. That rate is currently $10.95 per hour but will rise to $15 per hour next year under Biden’s plan — the equivalent of a 37% raise at the very bottom of the wage scale. The change would bring a significant pay increase to employees of private firms that hold government contracts for concessions, janitorial work, personal care and other lower-wage services. The wage rate would continue to be tied to an inflation index so that it increases with the cost of living, requiring firms to adjust their minimums each year.