Business Opinions Mixed on Minimum Wage Executive Order

The contracting community is praising U.S. President Joe Biden’s executive order to raise the federal minimum wage for contractors from US$7.25 an hour to $15,  which is part of his $1.9 trillion COVID-19 relief plan to Congress, Government Executive reports. The wage increase also will require federal contractors to provide employees with emergency paid leave and eliminate the tipping wage. However, some small businesses are worried about the proposed executive order, according to WJHL-TV.

If approved by Congress, the executive order would be implemented in President Biden’s first 100 days in office, on or before April 30, said White House Press Secretary Jen Psaki.

Taiwanna Milligan, leader of the Fight for $15 movement, said in a statement, “Extending a $15 wage to workers on federal contracts and subcontracts would give some 700,000 workers a raise, including many essential workers like custodial and food service workers.”

Jaime Contreras, vice president of Service Employees International Union (SEIU) local 32BJ, which includes federally contracted custodians and security officers, also approved of the proposed executive order. Contreras said the president is “enabling working families to better support local businesses, boost our economy, and alleviate overburdened state and federal programs.” 

However, some businesses in smaller cities, such as Johnson City, Tennessee, are worried about how the increase will affect them. Business owner James McAmis told WJHL that the wage increase would create job loss to his business. “If they made us pay everyone $15 an hour, I don’t think we’ll have a choice but to let people go and do the work ourselves,” he said.