Minimum wage update for federal contract workers

Finance

In this May 7, 2020, photo, the entrance to the Labor Department is seen near the Capitol in Washington. The record unemployment rate reflects a nation ravaged by the coronavirus pandemic, the economic devastation upending the presidential campaign and forcing President Donald Trump to overcome historic headwinds to win a second term. (AP Photo/J. Scott Applewhite)

WASHINGTON, D.C. (WTEN) – On Wednesday, the Department of Labor announced the increase of the minimum wage rate from $10.95 to $11.25 per hour for federal contract workers beginning January 1, 2022.

The Executive Order (FR 2021-19995) “Establishing a Minimum Wage for Federal Contractors,” is generally paid to workers performing work on or in connection with covered federal contracts, establishing a minimum wage rate for certain federal contractors that is adjusted annually based on inflation.

Additionally, effective Jan. 1, 2022, tipped employees in connection with covered contracts generally must be paid a minimum cash wage of $7.90 per hour. 

Federal covered contracts entered into on or after January 30, 2022, or that are renewed or extended will be generally subject to a higher $15.00 minimum wage rate established by Executive Order 14026 of April 27, 2021, Increasing the Minimum Wage for Federal Contractors.

Further information related to the Executive Orders and/or these wage rates may be directed to the Government Contracts Division at (202) 693-0064.

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