Appeals Court Upholds Federal Contractor Minimum Wage

May 7, 2024

What's New

President Biden had the authority to establish a minimum wage for federal contractors that exceeds the federal statutory minimum wage, the U.S. Court of Appeals for the Tenth Circuit ruled April 30, 2024.

Even though the federal minimum wage was $7.25 per hour, President Biden’s Executive Order 14026 and the Labor Department’s implementing regulations set the federal contractor minimum wage at $15 per hour as of January 30, 2022, with an escalator clause adjusting the wage each year based on the inflation rate.

Finding that the contractor minimum wage will benefit the government’s procurement goals by improving productivity and work quality, the Tenth Circuit affirmed a district court decision and ruled that the Procurement Act authorized the President to set a higher minimum wage for federal contractors.

What It Means

In Bradford v. DOL, the Tenth Circuit became the first federal appeals court to rule on a challenge to the federal contractor minimum wage, although appeals are pending in two other cases before the Fifth and Ninth Circuits.

Therefore, the federal contractor minimum wage remains in effect except on contracts in which Texas, Louisiana, and Mississippi are acting in their capacity as federal contractors.

What You Should Do

Follow CWC for updates about future developments in this case or the cases pending in other federal appeals courts.

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