For up to 390,000 workers, a $15 minimum wage is about to be a reality.
On Monday, the Department of Labor finalized its regulations for implementing a $15 minimum wage for federal contractors. It builds on an executive order President Joe Biden signed in April that would hike pay for workers under federal contracts. Now, that raise will go into effect on January 30, 2022 for new and renewed contracts, according to the Labor Department.
“The fact is, contract workers are essential workers, and critical to the federal government,” Labor Secretary Marty Walsh said in remarks on the final rule.
According to the Wall Street Journal, Labor Department officials said that around 327,000 contractors will benefit from the hike; New York University professor Paul Light told the Journal that the government employs about five million contractors.