Analysis

Low-Wage States To Feel Pinch Of Contractor Wage Increase

By Daniel Wilson (April 29, 2021, 9:52 PM EDT) -- The impact of President Joe Biden's executive order raising the minimum wage for federal contractors is likely to vary significantly by geographic region, potentially making federal work less attractive for some companies in lower-wage areas.

Biden on Tuesday ordered agencies to implement a $15-per-hour minimum wage requirement in services and construction contract solicitations beginning Jan. 30 — up from the current $10.95 minimum set under a 2014 order from then-President Barack Obama — after Congress recently rejected his efforts to include a $15 minimum for all U.S. workers in a COVID-19 relief bill.

For contractors in high-wage hot spots like the Northeast, West...

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