President Joe Biden is expected to sign an executive order on Tuesday that would raise the minimum wage of federal contractors to $15 per hour.
The executive order would increase the worker’s hourly wages from $10.95 to $15 per hour by early 2022. It would also eliminate the tipped minimum wage of these employees, which is currently $7.65 an hour, and ensures that disabled workers would receive $15 per hour.
Agencies would need to include the wage in their contract negotiations by January 30th and start paying their employees the wage by March 30th.
The wage will also be adjusted yearly based on inflation rates.
This executive order will boost the wages of a diverse range of workers, including cleaning professionals, maintenance workers, nursing assistants who care for veterans, food service workers, and laborers who work on federal infrastructure.
According to senior officials, this wage will not result in reduced employment or hurt businesses that hire federal contractors. It will also allegedly not increase the burden on taxpayers.