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Labor Department Issues Proposed Rule For Raising Minimum Wage Rate For Employees of Federal Contractors

 

Last month, the Labor Department issued a proposed rule that would raise the minimum wage rate to $15/hour for employees of federal contractors.

The proposed rule would implement President Joe Biden’s executive order that addressed the same and raise the hourly wage rates starting in January of 2022 with annual raises tied to inflation starting in 2023. As with any proposed rule, this is subject to revision and could be amended before the final rule is issued this November.

In the interim, federal government contractors (and subcontractors) should start taking steps to ensure compliance with this expected change.  Short of an unexpected change, I would expect this proposed rule to mirror the final rule issued later this fall.


For a copy of the proposed rule:  https://public-inspection.federalregister.gov/2021-15348.pdf

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