On September 27, 2023, DOL issued updated minimum wages for federal contractors for 2024. Contracts entered into with the federal government on or after January 30, 2022 will have a new minimum wage of $15.20 per hour. A $12.90 hourly minimum wage will apply to those contracts created on or after January 1, 2015, but before January 30, 2022.
A day earlier, a Texas federal court ruled that the Procurement Act does not give the President the authority to use an Executive Order to increase starting pay for workers who contract with the federal government. This ruling is the first court win for those opposing Biden's $15.00 Wage Executive Order, which was issued in April of 2021. However, the judge declined to issue a nationwide injunction, in that courts in certain other jurisdictions have upheld the contractor wage minimum. Texas v. Biden, S.D. Tex. (9/26/23). Thus, the court ruling only affects the states of Texas, Louisiana, and Mississippi, the states that challenged the wage increase in 2022.
This article is part of our November 2023 Newsletter.
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