The well-being and progress of federal workers demand an economy that can effectively work for everyone. President Biden signed the Minimum Wage Executive Order on April 27, 2021. It was about implementing the regulations and laws approved by the Department of Labor’s Wage and Hour Division.
It was done to ensure that all employees working on federal contracts get a fair wage and demonstrate that the government can lead by example. A prosperous economy that benefits all citizens is necessary for the advancement and working families’ well-being. The Minimum Wage Executive Order was signed by President Biden on April 27, 2021.
Moreover, the implementing regulations, which were adopted by the Department of Labor’s Wage and Hour Division, said that workers employed by the federal government are paid fairly. They also said that the executive branch can set an impressive example for the rest of the country.
What are the Other Updates
The government decided to boost the federal contract workers’ minimum wage to $15.00 per hour as of January 30, 2022. This rise, which will benefit more than 300,000 workers, comes at a time when the federal government is making a historic investment in our country’s infrastructure, which will result in the creation of millions of new jobs in the construction industry and allied sectors.
Additionally, in addition to covering construction employees, federal contracts for child care, healthcare, building, and other services will also be subject to the $15 minimum wage. After all, federal employees deserve better pay, and even Congress acknowledged this need.
Women make up around 54% of those affected by the increase in the minimum wage, and people of color make up about 25% of those affected. Our minimum wage final rule will result in an average boost of $5,228 per year for all affected employees.
Raising the minimum wage strengthens family finances, lessens poverty, and moves society closer to ending long-standing income disparity. Better government services increased morale and productivity, and less turnover and absenteeism are all additional advantages. It can immensely help small-scale businesses. Businessmen can refer to this updated guide to start a government contracting business in 2022 to make the most of it.
Other Ways of Protection
- Ensuring that the minimum wage is increased annually.
- Increasing the pay of disabled workers, who could otherwise make less than the minimum wage.
- Ensuring that starting on January 1, 2023, and increasing to 100% on January 1, 2024, cash wages for government contract employees who receive tips equal at least 85% of the full minimum wage.
- The minimum wage protections are being restored to workers that offer recreational services on allotted federal lands.
By January 30, 2021, these adjustments will be made to the majority of new contracts, including extensions or renewals. They are applicable to all 50 states, the Virgin Islands, the District of Columbia, Puerto Rico, Johnston Island, the Commonwealth of the Northern Mariana Islands, and Wake Island, as well as the Outer Continental Shelf lands as considered in the Outer Continental Shelf Lands Act.
Public employees witness firsthand how the efforts of federal contract workers enable the government to function and guarantee that the American people receive crucial services and resources. So, they are pleased that Executive Order 14026 will help tens of thousands of devoted workers, their families, and our neighborhoods.
How much does the Government of the USA spend on Federal Contracts?
The federal government’s procurement inclination in economy and efficiency is “advanced when the federal government contracts with sources that fairly compensate their workers,” according to Executive Order 13658, which then-President Barack Obama issued on February 12, 2014.
According to the experts of the biggest government contracting companies in the USA, the federal government spends approximately half a trillion dollars on contracts each year. Moreover, as per a blog article by The Council of State Governments, a platform for public policy, the general objectives of salary increases are to “improve worker productivity, minimize federal employee turnover and absenteeism, and lower recruiting and training costs.”
