Associated Builders & Contractors Responds to Biden Administration Federal Contractor Minimum Wage Increase

Associated Builders and Contractors (ABC) released the following statement in response to the U.S. Department of Labor’s Wage and Hour Division’s final rule increasing the minimum wage on federal contracts from $10.95 to $15 per hour beginning in early 2022, superseding a scheduled increase to $11.25 that will occur on Jan. 1.

“Most of ABC’s federal contractor members already pay the vast majority of their workers at wage rates higher than the $15 per hour minimum established in this rule,” said Ben Brubeck, ABC VP of regulatory, labor and state affairs. “However, ABC is concerned with the Biden administration’s decision to ignore Congress’s authority and not establish a market-driven approach to wage determination. This rulemaking will create unnecessary confusion and needlessly increase the compliance burden on ABC member contractors that build America’s infrastructure and perform other federal or federally assisted work.”

On Aug. 27, ABC submitted comments to the DOL in response to this proposed rule.

The $15 minimum wage for federal contractors will take effect on Jan. 30.

This will provide a likely wage increase for over 300,000 workers, according to Biden administration estimates.

The federal minimum wage for covered nonexempt employees is $7.25 per hour.