President Biden Hiking Minimum Wage to $15 for Federal Contract Workers

Michael P. Norton

State House News Service

Workers employed under federal contracts will receive a $15 minimum wage beginning in 2022, under an executive order announced Tuesday by President Joe Biden.

The White House estimated that hundreds of thousands of workers will benefit from the change, including cleaning professionals and maintenance workers, nursing assistants, cafeteria and food service workers, and laborers. Starting Jan. 30, 2022, all federal agencies will need to incorporate a $15 minimum wage in new contract solicitations, according to the White House, and by March 30, 2022, all agencies will need to implement the minimum wage into new contracts. Agencies must also implement the higher wage into existing contracts when parties exercise their option to extend contracts, which often occurs annually, the White House said.

The Massachusetts minimum wage sits at $13.50 per hour and is set to rise to $14.25 on Jan. 1, 2022. It would then briefly lag the wage floor set under Biden’s directive until increasing to $15 an hour, the last boost scheduled under current state law, on Jan. 1, 2023. Officials at the U.S. Department of Labor, newly led by Secretary Martin Walsh, and the Federal Acquisition and Regulatory Council are scheduled to deliver rules to implement and enforce the executive order.