Federal Minimum Wage Should Be Indexed For Local Markets

Law360 (May 11, 2021, 3:04 PM EDT) -- A recent Law360 article explained that President Joe Biden's executive order increasing the minimum wage to $15 per hour for federal contractors has an expected impact that is "likely to vary significantly by region, potentially making federal work less attractive for some companies in lower-wage areas."[1]

This executive order substantially increases the contractor minimum wage from $10.95 to $15, and will have a widely different impact across cities and states because wage rates for the same occupation vary substantially across areas. In contrast, a wage mandate indexed to local area pay rates would not have a substantially different impact across areas....

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