Trump Scraps $17.75 Federal Contractor Minimum Wage: What Employers Need to Know
President Trump just rescinded an executive order that mandated a higher minimum wage for workers on federal contracts. The Biden-era order initially set the wage to $15 an hour in 2022, and it was ultimately raised to $17.75 earlier this year. Trump’s move was part of a March 14 order rescinding 18 actions from the prior administration – in addition to the 78 nixed on his first day in office. What does this mean for federal contractors and what should you do now? Although Biden’s minimum wage order is no longer in effect, federal contractors still have wage obligations under federal, state, and local laws. Here’s an overview of how we got here and what you should consider doing now. Key Points for Federal Contractors Biden’s Order Raised Contractor Wage: Under President Biden’s Executive Order 14026, the applicable minimum wage rate for workers performing work on or in connection with certain covered federal contracts was raised to $15 in 2022. The order provided a boost ...