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Minimum wage for workers on new federal contracts will rise to $15 starting Jan. 30


On May 19, 2021 in Washington D.C., labor activists organize a rally to support a $15 national minimum wage.

Kevin Dietsch | Getty Images News | Getty Images

The U.S. Department of Labor has announced that federal contractors will receive an hourly minimum of $15 for all contracts they sign with government agencies starting Jan. 30, 2022.

President Joe Biden has signed an executive order to lift the hourly rates for federal contractors. $10.95In April. This change will affect approximately 327,000 people, which includes food service employees and nurses assistants making less than $15 per hour.

This order will also result in the elimination of federal contractor’s tipped minimum wages, currently $7.65 per hour. It will be ended by 2024.

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However, many workers will need to wait until January in order to receive the wage bump. Workers on federal contracts that are three or five years old will not be eligible for the wage increase.

Yet, the Labor Department officials celebrated the increase on Monday during a phone call with reporters.

Jessica Looman is the acting administrator of Department of Labor’s Wage and Hour Division. She said that “it’s a move in the right direction.”

“In the end, we are trying to leverage the purchasing power federal government to provide fair wages across the country as well as in the territories.