As expected, the U.S. Department of Labor (DOL) has published proposed regulations to implement President Biden’s April 27, 2021, Executive Order (E.O.) 14026 calling for an increase in the minimum wage for employees working on certain federal contracts to $15.00 per hour. If finalized as proposed, the increase would go into effect beginning January 30, 2022, and would be indexed for inflation annually thereafter.
DOL’s Notice of Proposed Rulemaking (NPRM) provides additional clarity as to how DOL interprets the coverage and compliance obligations under the E.O. in comparison to former President Obama’s similar E.O. signed in 2014, which raised the minimum wage on covered contracts from $7.25 to $10.10, indexed for inflation.
As is the case with the Obama E.O., the Biden E.O. would not cover contracts for materials or supplies. However, DOL’s proposed rule articulates five ways in which the agency contends the new E.O. is broader than its predecessor.
Members of the Center for Workplace Compliance (CWC) can read more here.