President Joe Biden is expected to sign an executive order Tuesday that would raise the minimum wage for federal workers and tipped employees working on government contracts to $15 an hour, senior administration authorities said. The raise from $10.95 an hour would start in January, and organizations would have to execute the measure no later than March.
Biden has signed a separate order to raise the minimum wage to $15 an hour for government employees. The new order also coordinates government agencies to raise the tipped minimum hourly wage to $15 by 2024 and to guarantee that tipped employees working on government contracts earn the same minimum wage as other workers on government contracts.
The new order raises the minimum wage to the same level for government contract workers with disabilities. It also incorporates a cost-of-living increase each year starting in 2022.
The official said that to execute the order, the Labor Department and the Federal Acquisition Regulatory Council would both need to issue rules to agencies. Once they are created, they will be applied to new contracts, as well as contracts up for renewal, which can be reviewed and revised to incorporate the new minimum wage.
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