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STATEMENT: Raising the Minimum Wage for Federal Contractors Will Improve Hundreds of Thousands of Lives

Washington, D.C. — Today, President Joe Biden signed an executive order requiring that federal contract workers earn $15 per hour. The order builds on previous actions taken by the Obama administration that created a wage floor and extended the protections to Americans with disabilities working on contracts.

Following the signing of the order, Karla Walter, senior director of Employment Policy at the Center for American Progress, issued the following statement:

President Biden will improve the lives of nearly 400,000 of American workers by raising the contractor minimum wage to $15, eliminating the tipped minimum wage, and ensuring coverage for federal contract workers with disabilities. The order will help close pay disparities for women and Black and Latino workers, who are more likely to be employed in the low-wage industries that the U.S. government contracts out, such as nursing care and building and administrative services. President Biden’s action is a critical step toward delivering on his commitments to raise wages for workers broadly.

Moreover, President Biden has pledged to take additional actions to ensure that federal economic recovery investments create good jobs in the United States, such as requiring contractors to provide emergency paid leave and updating federal prevailing wage regulations. We will continue to support efforts to ensure that the government fulfills its commitment to be a model employer.

For more information on this topic or to speak with an expert, please contact Julia Cusick at .