March 1, 2021

Volume XI, Number 60

Advertisement

March 01, 2021

Subscribe to Latest Legal News and Analysis

Biden Administration Proposes Raising Minimum Wage for Federal Employees and Contractors

As part of a “third wave” of executive orders, on January 22, 2021, President Biden issued an executive order instructing the Director of the U.S. Office of Personnel Management to “provide a report to the President with recommendations to promote a $15/hour minimum wage for Federal employees.”  The Biden Administration announced via a Fact Sheet published on the White House’s website that the move is purportedly designed to ensure that the federal government is a model employer:

[Federal employees] keep us healthy, safe, and informed, and their work transcends partisan politics. They are health care workers who care for veterans, the elderly, and the disabled. They are expert scientists, medical doctors, and technicians who maintain world-class standards, prevent and combat the spread of infectious diseases, and save countless lives. They deliver our mail, run our national parks, keep our federal buildings up and running, help protect us against climate change and environmental poisoning, and ensure that the law is applied faithfully and fairly. They are talented, hard-working, and inspiring Americans, worthy of the utmost dignity and respect.

(Click here to read the Fact Sheet.)

The Fact Sheet also announced that President Biden directed his administration “to start the work that would allow him to issue an Executive Order within the first 100 days that require federal contractors to pay a $15 minimum wage and provide emergency paid leave to workers.”  As the federal government is the nation’s largest employer, these proposed executive orders, if enacted, could affect a large swath of workers.

In addition, as many commentators have suggested, these orders may be a stepping stone to raise the minimum wage for private-sector employees as well, which is currently set at $7.25 per hour.  Indeed, in Biden’s proposed $1.9 trillion stimulus plan, dubbed the American Rescue Plan, is a proposal to increase the minimum wage to $15 per hour across the board, as well as give employees entitlements to sick leave and other benefits.  This would have huge implications for American employers, and require them to audit their existing pay practices to ensure compliance.

Advertisement
©2020 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume XI, Number 27
Advertisement
Advertisement

TRENDING LEGAL ANALYSIS

Advertisement
Advertisement

About this Author

Kyle D. Winnick Labor and Employment Attorney Epstein Becker Green
Associate

Kyle Winnick defends employers of all sizes, from startups to Fortune 500 companies, in all aspects of labor and employment-related litigation. He draws upon his practical experience and creative legal thinking to craft effective litigation strategies. Kyle has represented clients before federal and state trial and appellate courts, arbitration tribunals, and administrative agencies, such as the Equal Employment Opportunity Commission, the U.S. Department of Labor, and the National Labor Relations Board.

Employers seek Kyle’s assistance in...

973-639-8298
Advertisement
Advertisement