DOL Finalizes Rule Requiring $15 Minimum Wage for Federal Contractors

Earlier this month, the Department of Labor (DOL) finalized a rule requiring federal contractors and subcontractors to increase their hourly wage for their workers to at least $15. The requirement will become effective January 30, 2022. The rule was finalized at the direction of President Biden through his Executive Order 14026 which he signed back in April. According to DOL, the rule:

• Increases the hourly minimum wage for certain federal contractors to $15 beginning January 30, 2022;
• Continues to index the minimum wage to an inflation measure in future years;
• Eliminates the tipped minimum wage for federal contractors by 2024;
• Ensures a $15 minimum wage for workers with disabilities performing work on or in connection with covered contracts; and
• Restores minimum wage protections to outfitters and guides operating on federal lands.  

While the rule applies to federal contractors and subcontractors, it does provide a carveout for materials suppliers such as ready mixed concrete producers. The rule states that, “Executive Order 14026 does not apply to subcontracts for the manufacturing or furnishing of materials, supplies, articles, or equipment, and this clause is not required to be inserted in such subcontracts.” This is a welcome provision to the rule, as the ready mixed concrete industry has advocated for such language which is consistent across other federal contracts instances.

Click here for more information on the final rule. You may also contact Kevin Walgenbach at kwalgenbach@nrmca.org.