In July, the Department of Labor (“DOL”) announced a Notice of Proposed Rule Making to develop enforcement and implementation procedures for President Biden’s Executive Order 14026. Executive Order 14026, which was signed on April 27, 2021, requires federal contractors to pay their employees at least $15.00 per hour beginning January 30, 2022. Beginning January 1, 2023, and each year annually, the minimum wage for employees of federal contractors will increase based upon inflation. The current minimum wage for federal contractor employees is $10.95.

The minimum wage for federal contractors was last raised in January 2015 following the implementation of President Obama’s Executive Order 13658, which raised the wage to $10.10 with an annual increase based upon inflation.

The DOL’s proposed rule includes the following:

  • An anti-retaliation provision;
  • DOL procedures for addressing employee complaints, investigations, and adjudication;
  • A clause to be included in all covered contracts; and
  • A poster outlining the updated minimum wage to be posted in a conspicuous place.

The public comment period for the proposed rule closed on August 23, 2021, paving the way for finalizing the rule. The final rule is expected to be released by the DOL in November 2021. As currently written, the rule will only apply to contracts entered, renewed, or extended after January 30, 2022. Accordingly, federal contractors with current contracts may not need to implement the wage increase immediately.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Megan E. Bennett Megan E. Bennett

Megan focuses her practice on the representation of management in all aspects of labor and employment law. She assists in providing day-to-day counseling to employers by researching and recommending best practices for companies on human resources issues such as terminations, compliance with employment…

Megan focuses her practice on the representation of management in all aspects of labor and employment law. She assists in providing day-to-day counseling to employers by researching and recommending best practices for companies on human resources issues such as terminations, compliance with employment laws, workplace investigations, and the preparation of policies and employment agreements. Megan aids in the defense of employers in discrimination, harassment, retaliation, and various other employment-related claims before judicial bodies and administrative agencies. Megan assists clients across several industries in preparing annual affirmative action plans and defending against OFCCP audits.

During law school, Megan had hands-on experience, including serving as a Judicial Extern to the Honorable Judge Christopher Boyko of the U.S. District Court for the Northern District of Ohio, a Law Clerk for the Cuyahoga County Prosecutor’s Office, and a Legal Intern for the U.S. Department of Education, Office for Civil Rights. In addition, Megan was a Frantz Ward Summer Associate.

Prior to law school, Megan taught Kindergarten and Pre-Kindergarten in New York City through Teach for America. Megan holds a Master’s degree in Early Childhood Education from Lehman College of the City University of New York. Megan also has a Bachelor’s degree in Political Science and Communications from the University of Dayton.

Read more about Megan E. BennettMegan's Linkedin Profile
Show more Show less
Related Posts
 Employers: Make Sure You’re Crystal Clear on Pay Transparency
June 22, 2023
International Brotherhood of Teamsters entrance of its office in Washington, DC.
Supreme Court Rules Unions can be Liable for Strike Misconduct
June 9, 2023
Employment eligibility verification form
Official United States Forms
 Time is Running Out for Employers to Inspect I-9 Documents That Were Reviewed Virtually Under COVID Rules
May 26, 2023