October 25, 2021

Volume XI, Number 298

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October 25, 2021

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$11.25 Minimum Wage Effective January 1, 2022 for Federal Contractors Subject to Obama-Era Executive Order

In the flurry of activity surrounding President Biden’s Executive Order 14042 – Ensuring Adequate COVID Safety Protocols for Federal Contractors,  federal contractors are also awaiting approval of regulations to implement President Biden’s Executive Order  raising the minimum wage for some federal contractor employees to $15 per hour.

In the meantime, the provisions of former President Obama’s minimum wage order have resulted in an increase in the minimum wage from $10.95 to $11.25 for covered employees.  That rate will go into effect on January 1, 2022.

As a reminder, the federal contractor minimum wage applies only to workers and employees working “on or in connection with” a covered federal contract or subcontract.  An employee works “on” a covered contract when she performs the work called for by the contract.  Employees are considered to be working “in connection with” a covered contract if they are “performing work activities that are necessary to the performance of a covered contract but … are not directly engaged in performing the specific services called for by the contract itself.”

In addition, the minimum wage does not apply to employees working only “in connection with” a covered contract, where the employee works less than 20% of her time in any given workweek “in connection with” a covered contract.

Jackson Lewis P.C. © 2021National Law Review, Volume XI, Number 263
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About this Author

Laura Mitchell, Jackson Lewis, Management Representation lawyer, Contractual Drafting Attorney
Principal

Laura A. Mitchell is a Principal in the Denver, Colorado, office of Jackson Lewis P.C. She represents management exclusively in all areas of employment law, focusing on affirmative action and government contractor compliance.

Ms. Mitchell is a Principal in the firm’s Affirmative Action and OFCCP Defense practice group, representing government and non-government contractors in Office of Federal Contract Compliance Programs (OFCCP) matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming...

303-225-2382
F. Christopher Chrisbens, Jackson Lewis, litigation attorney, employment law, intellectual property legal counsel, OFCCP compliance lawyer
Of Counsel

F. Christopher Chrisbens is Of Counsel in the Denver, Colorado, office of Jackson Lewis P.C. Over his years as a litigation attorney, manager, trainer and workplace investigator, Mr. Chrisbens has developed a diverse array of employment law skills serving employers in a variety of legal and corporate settings.

Mr. Chrisbens began his career as a litigator and appellate practitioner in Los Angeles, California, and later returned to Boulder, Colorado where he was partner in a Boulder firm practicing in the areas of commercial...

303-225-2381
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