Raises Set for Minimum Wage Federal Contract Workers

The U.S. Department of Labor announced an annual minimum wage increase for federal contract workers.  

The increase from US$10.95 to $11.25 per hour, which is effective January 1, 2022, is part of Executive Order 13658, “Establishing a Minimum Wage for Federal Contractors,” which established a minimum wage rate for federal contractors that is adjusted annually based on inflation.

The Federal Register notice also states that, beginning January 1, employers must pay tipped employees performing work on or in connection with covered contracts a minimum cash wage of $7.90 per hour.

Covered contracts that are entered into on or after January 30, 2022—or that are renewed or extended on or after January 30, 2022—will be generally subject to a higher minimum wage rate of $15 per hour established by Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors.”