Joe Biden plans to sign an executive order: Minimum $15-an-hour wage for federal contractors

President Joe Biden will sign an executive order on Tuesday resulting in federal workers paying their employees a minimum wage of $15 an hour starting from March 2022. These orders will have an effect on the current pay floor for workers under federal contract, which is $10.95.

Senior administrative officials stated – this hike will be benefiting around a thousand people. This will simultaneously lay down the Democrat’s push to raise the federal pay floor to the same level.

His administration plans to eradicate the tipped minimum wage for federal contractors which currently let its employers pay tipped workers $7.65 an hour, by raising it to the equal minimum wage as other employees on federal contracts, by 2024.

Officials also added that this executive order will help address income inequality. They told they do not expect the higher wage to raise costs for taxpayers because it will boost productivity and morale and reduce recruitment and training costs caused by higher turnover.

President Biden’s administration stated .”These workers are critical to the functioning of the federal government: from cleaning professionals and maintenance workers who ensure federal employees have safe and clean places to work, to nursing assistants who care for the nation’s veterans, to the cafeteria and other food service workers who ensure military members have healthy and nutritious food to eat, to laborers who build and repair federal infrastructure”, in a fact sheet announcing the decision.