Biden will sign an executive order on Tuesday, and employers will be required to pay a minimum wage of $ 15 to workers covered by federal contracts. Currently, the minimum wage for workers under a federal contract is $ 10.95 per hour.
All federal agencies are required to include a $ 15 minimum wage in new contract solicitations after January 30, 2022. A minimum wage of $ 15 must be included in all federal contracts by March 30.
A senior government official who explained Byden’s plans to reporters on Monday said that rising wages would provide food to cleaning professionals and conservative workers, nursing assistants caring for national veterans, cafeterias, and military personnel. Workers, and workers building and repairing federal infrastructure.
Officials couldn’t say how many workers would see a salary increase, but estimated that number was in the hundreds of thousands.
Analysis shows that raising the minimum wage does not increase taxpayer costs. Higher wages increase productivity and lower other costs such as supervision and training costs, he said.
Federal agencies must incorporate a $ 15 minimum wage into existing contracts if employers exercise the option to extend such agreements. This often happens every year. Since the minimum wage is linked to inflation, it will be automatically adjusted to reflect changes in living expenses every year from 2022 onwards.
This order will also abolish a separate wage system for contract workers with tips. Currently, employees with tips working under a federal contract are guaranteed a cash wage of at least $ 7.65 per hour. If the worker’s tip and cash wage required are less than $ 10.95 per hour (the current minimum wage of a federal contractor), the employer will have to make up for the difference.
By 2024, Biden’s order will abolish the minimum wage of federal contractors. Tip employees working on a federal contract earn the same minimum wage as other employees on a federal contract.
Opinion polls show that Americans are overwhelmingly supportive of the increase, but Congress has not raised the federal minimum wage ($ 7.25 per hour) since 2007.
Biden promised to demand a minimum of $ 15 in last year’s presidential election, but some Republicans in Congress and some fear of cutting jobs if employers are forced to pay higher wages. Faced with opposition from moderate Democrats.
Biden planned to include a minimum wage increase in $ 1.9 trillion COVID-Relief Package It was his first major legislation as president.But Congress then removed the proposal from the package Senator It was determined to be ineligible under the special budget rules used by the Senate to pass the bill.
Biden said he was prepared to pursue a minimum wage of $ 15 as another law. However, the approval of another bill is an even bigger hurdle, as the Senate will need 60 votes to overcome the filibuster.
On his second day in office, Biden laid the foundation for raising the federal contractor’s minimum wage to $ 15.
He signed an executive order on 22 January and administers work to allow federal contractors to pay a minimum wage of $ 15 and issue an order to give them emergency paid leave in the first 100 days Instructed. Government agencies were tasked with identifying which federal officials earned less than $ 15 an hour and making recommendations for raising salaries.
The order Biden signs on Tuesday does not cover emergency paid leave. A senior government official said the government might announce that soon.
Michael Collins covers the White House. Follow him on Twitter @mcollinsNEWS
This article was originally published in USA TODAY: Biden raises federal contractor minimum wage to $ 15 per hour