A new executive order from President Trump on March 14 revoked the increase to the federal contractor minimum wage implemented by the Biden Administration. Trump’s order, entitled “Additional Rescissions Of Harmful Executive Orders And Actions,” revokes Biden’s E.O. 14026, which increased the minimum wage for covered federal contractors to $15 an hour beginning in 2022 with annual adjustments for inflation. The federal contractor minimum wage had climbed to $17.75.
The new executive order also revokes President Biden’s Presidential Memorandum of November 16, 2023 (“Advancing Worker Empowerment, Rights, and High Labor Standards Globally”) and his E.O. 14119 of March 6, 2024 (“Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums”).
Trump’s new executive order follows several lawsuits involving the federal contractor minimum wage. The U.S. Courts of Appeals for the Fifth and Tenth Circuits upheld Biden’s federal contractor minimum wage, while the Ninth Circuit concluded that Biden exceeded his authority in issuing it. The U.S. Supreme Court in January declined to hear a case that addressed the issue.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.