Biden to raise minimum wage to $15 an hour for federal contractors


President Biden is set to sign an executive order to raise the minimum wage for federal contractors, the White House has announced.
Biden's order will require that federal contractors be paid a minimum of $15 an hour, an increase from $10.95 an hour, officials said. The order will set a deadline of Jan. 30, 2022 for agencies to incorporate this wage into new contract solicitations, according to the White House, as well as a deadline of March 30, 2022, to implement it into new contracts.
The White House also said the executive order will ensure that "tipped employees working on federal contracts will earn the same minimum wage as other employees on federal contracts," eliminating the "tipped minimum wage" for these federal contractors by 2024. This will affect "hundreds of thousands" of federal contractors, the White House said, although a senior administration official noted to NBC the exact number who will benefit is not "static" because "federal contracts are not static, and it will take time to phase it in into new contracts." Former President Barack Obama previously signed an executive order raising the minimum wage for federal contractors in 2014.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"As a result of raising the minimum wage, the federal government's work will be done better and faster," the White House said. "At the same time, the executive order ensures that hundreds of thousands of workers no longer have to work full time and still live in poverty."
This comes after an effort by Democrats to raise the federal minimum wage to $15 an hour came to a halt in the Senate, CNN notes. The Senate parliamentarian in February ruled that Democrats could not include a minimum wage increase to $15 an hour in their COVID-19 relief package under budget reconciliation rules. The White House at the time said that Biden was "disappointed in this outcome," but "respects the parliamentarian's decision."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
The best shows to see at Edinburgh Fringe 2025
The Week Recommends The world's biggest arts festival is back with an incredible line-up
-
Wonsan-Kalma: North Korea's new 'mammoth' beach resort
Under the Radar Pyongyang wants to boost tourism but there won't be many foreign visitors to Kim Jong Un's 'pet project'
-
The 5 best TV reboots of all time
The Week Recommends Finding an entirely new cast to play beloved characters is harder than it looks
-
AI scammer fakes Rubio messages to top officials
Speed Read The unknown individual mimicked Rubio in voice and text messages sent to multiple government officials
-
SCOTUS greenlights Trump's federal firings
speed read The Trump administration can conduct mass federal firings without Congress' permission, the Supreme Court ruled
-
New tariffs set on 14 trading partners
Speed Read A new slate of tariffs will begin August 1 on imports from Japan, South Korea, Thailand and more
-
Elon Musk launching 'America Party'
Speed Read The tech mogul promised to form a new political party if Trump's megabill passed Congress
-
Judge blocks Trump's asylum ban at US border
Speed Read The president violated federal law by shutting down the US-Mexico border to asylum seekers, said the ruling
-
Thai court suspends prime minister over leaked call
Speed Read Prime Minister Paetongtarn Shinawatra has been suspended, pending an ethics investigation
-
Senate passes GOP megabill after Alaska side deal
The pivotal yes vote came from Sen. Lisa Murkowski, whose support was secured following negotiated side deals for her home state Alaska
-
Trump sues LA over immigration policies
Speed Read He is suing over the city's sanctuary law, claiming it prevents local law enforcement from cooperating with federal immigration authorities