A federal trial court in Arizona has rejected a challenge brought by five states questioning the legality of a Biden Executive Order that raised the minimum wage payable on specified federal contracts to $15 an hour, finding the President acted within his authority. A similar challenge brought by three other states in federal court in Texas awaits a ruling. Last month, the U.S. District Court for the District of Arizona found that President Biden did not exceed his authority under the federal Procurement Act in issuing E.O. 14026. The court found “a sufficiently close nexus” between E.O. 14026 and the Procurement Act’s goals of economy and efficiency in federal contracting. The other lawsuit, which is pending in Texas, raises similar arguments.
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