Presidential DocumentExecutive Order 140262021-09263
Increasing the Minimum Wage for Federal Contractors
Primary source
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Published
April 30, 2021
Signed
April 27, 2021
Issuing agencies
Executive Office of the President
Full Text
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<title>Federal Register, Volume 86 Issue 82 (Friday, April 30, 2021)</title>
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[Federal Register Volume 86, Number 82 (Friday, April 30, 2021)]
[Presidential Documents]
[Pages 22835-22838]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-09263]
Presidential Documents
Federal Register / Vol. 86, No. 82 / Friday, April 30, 2021 /
Presidential Documents
[[Page 22835]]
Executive Order 14026 of April 27, 2021
Increasing the Minimum Wage for Federal
Contractors
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the Federal Property and
Administrative Services Act, 40 U.S.C. 101 et seq., and
in order to promote economy and efficiency in
procurement by contracting with sources that adequately
compensate their workers, it is hereby ordered as
follows:
Section 1. Policy. This order promotes economy and
efficiency in Federal procurement by increasing the
hourly minimum wage paid by the parties that contract
with the Federal Government to $15.00 for those workers
working on or in connection with a Federal Government
contract as described in section 8 of this order.
Raising the minimum wage enhances worker productivity
and generates higher-quality work by boosting workers'
health, morale, and effort; reducing absenteeism and
turnover; and lowering supervisory and training costs.
Accordingly, ensuring that Federal contractors pay
their workers an hourly wage of at least $15.00 will
bolster economy and efficiency in Federal procurement.
Sec. 2. Increasing the Minimum Wage for Federal
Contractors and Subcontractors. (a) Executive
departments and agencies, including independent
establishments subject to the Federal Property and
Administrative Services Act, 40 U.S.C. 102(4)(A), (5)
(agencies), shall, to the extent permitted by law,
ensure that contracts and contract-like instruments (as
defined in regulations issued pursuant to section 4(a)
of this order and as described in section 8(a) of this
order) include a clause that the contractor and any
covered subcontractors (as defined in regulations
issued pursuant to section 4(a) of this order) shall
incorporate into lower-tier subcontracts. This clause
shall specify that, as a condition of payment, the
minimum wage to be paid to workers employed in the
performance of the contract or any covered subcontract
thereunder, including workers whose wages are
calculated pursuant to special certificates issued
under section 14(c) of the Fair Labor Standards Act of
1938 (29 U.S.C. 214(c)), shall be at least:
(i) $15.00 per hour, beginning January 30, 2022; and
(ii) beginning January 1, 2023, and annually thereafter, an amount
determined by the Secretary of Labor (Secretary). The amount shall be
published by the Secretary at least 90 days before such new minimum wage is
to take effect and shall be:
(A) not less than the amount in effect on the date of such determination;
(B) increased from such amount by the annual percentage increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers (United
States city average, all items, not seasonally adjusted), or its successor
publication, as determined by the Bureau of Labor Statistics; and
(C) rounded to the nearest multiple of $0.05.
(b) In calculating the annual percentage increase
in the Consumer Price Index for purposes of subsection
(a)(ii)(B) of this section, the Secretary shall compare
such Consumer Price Index for the most recent month,
quarter, or year available (as selected by the
Secretary prior to the first year for which a minimum
wage is in effect pursuant to subsection (a)(ii)(B) of
this section) with the Consumer Price Index for the
same month in the
[[Page 22836]]
preceding year, the same quarter in the preceding year,
or the preceding year, respectively.
(c) Nothing in this order shall excuse
noncompliance with any applicable Federal or State
prevailing wage law, or any applicable law or municipal
ordinance establishing a minimum wage higher than the
minimum wage established under this order.
Sec. 3. Application to Tipped Workers. (a) For workers
covered under section 2 of this order who are tipped
employees pursuant to section 3(t) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 203(t)), the cash wage
that must be paid by an employer to such workers shall
be at least:
(i) $10.50 per hour, beginning January 30, 2022;
(ii) beginning January 1, 2023, 85 percent of the wage in effect under
section 2 of this order, rounded to the nearest multiple of $0.05; and
(iii) beginning January 1, 2024, and for each subsequent year, 100 percent
of the wage in effect under section 2 of this order.
(b) Where workers do not receive a sufficient
additional amount on account of tips, when combined
with the hourly cash wage paid by the employer, such
that their wages are equal to the minimum wage under
section 2 of this order, the cash wage paid by the
employer, as set forth in this section for those
workers, shall be increased such that their wages equal
the minimum wage under section 2 of this order.
Consistent with applicable law, if the wage required to
be paid under the Service Contract Act, 41 U.S.C. 6701
et seq., or any other applicable law or regulation is
higher than the wage required under section 2 of this
order, the employer shall pay additional cash wages
sufficient to meet the highest wage required to be
paid.
Sec. 4. Regulations and Implementation. (a) The
Secretary shall, consistent with applicable law, issue
regulations by November 24, 2021, to implement the
requirements of this order. Such regulations shall
include both definitions of relevant terms and, as
appropriate, exclusions from the requirements of this
order. Within 60 days of the Secretary issuing such
regulations, the Federal Acquisition Regulatory
Council, to the extent permitted by law, shall amend
the Federal Acquisition Regulation to provide for
inclusion in Federal procurement solicitations,
contracts, and contract-like instruments subject to
this order the clause described in section 2(a) of this
order.
(b) Within 60 days of the Secretary issuing
regulations pursuant to subsection (a) of this section,
agencies shall take steps, to the extent permitted by
law, to exercise any applicable authority to ensure
that contracts and contract-like instruments as
described in sections 8(a)(i)(C) and (D) of this order,
entered into on or after January 30, 2022, consistent
with the effective date of such agency action, comply
with the requirements set forth in sections 2 and 3 of
this order.
(c) Any regulations issued pursuant to this section
should, to the extent practicable, incorporate existing
definitions, principles, procedures, remedies, and
enforcement processes under the Fair Labor Standards
Act of 1938, 29 U.S.C. 201 et seq.; the Service
Contract Act, 41 U.S.C. 6701 et seq.; the Davis-Bacon
Act, 40 U.S.C. 3141 et seq.; Executive Order 13658 of
February 12, 2014 (Establishing a Minimum Wage for
Contractors); and regulations issued to implement that
order.
Sec. 5. Enforcement. (a) The Secretary shall have the
authority for investigating potential violations of and
obtaining compliance with this order.
(b) This order creates no rights under the Contract
Disputes Act, 41 U.S.C. 7101 et seq., and disputes
regarding whether a contractor has paid the wages
prescribed by this order, as appropriate and consistent
with applicable law, shall be disposed of only as
provided by the Secretary in regulations issued
pursuant to this order.
Sec. 6. Revocation of Certain Presidential Actions.
Executive Order 13838 of May 25, 2018 (Exemption From
Executive Order 13658 for Recreational Services on
Federal Lands), is revoked as of January 30, 2022.
Executive
[[Page 22837]]
Order 13658 of February 12, 2014 (Establishing a
Minimum Wage for Contractors), is superseded, as of
January 30, 2022, to the extent it is inconsistent with
this order.
Sec. 7. Severability. If any provision of this order,
or the application of any provision of this order to
any person or circumstance, is held to be invalid, the
remainder of this order and its application to any
other person or circumstance shall not be affected
thereby.
Sec. 8. Applicability. (a) This order shall apply to
any new contract; new contract-like instrument; new
solicitation; extension or renewal of an existing
contract or contract-like instrument; and exercise of
an option on an existing contract or contract-like
instrument, if (i):
(A) it is a procurement contract or contract-like instrument for services
or construction;
(B) it is a contract or contract-like instrument for services covered by
the Service Contract Act;
(C) it is a contract or contract-like instrument for concessions,
including any concessions contract excluded by Department of Labor
regulations at 29 CFR 4.133(b); or
(D) it is a contract or contract-like instrument entered into with the
Federal Government in connection with Federal property or lands and related
to offering services for Federal employees, their dependents, or the
general public; and
(ii) the wages of workers under such contract or contract-like instrument
are governed by the Fair Labor Standards Act, the Service Contract Act, or
the Davis-Bacon Act.
(b) For contracts or contract-like instruments
covered by the Service Contract Act or the Davis-Bacon
Act, this order shall apply only to contracts or
contract-like instruments at the thresholds specified
in those statutes. Where workers' wages are governed by
the Fair Labor Standards Act of 1938, this order shall
apply only to procurement contracts or contract-like
instruments that exceed the micro-purchase threshold,
as defined in 41 U.S.C. 1902(a), unless expressly made
subject to this order pursuant to regulations or
actions taken under section 4 of this order.
(c) This order shall not apply to grants;
contracts, contract-like instruments, or agreements
with Indian Tribes under the Indian Self-Determination
and Education Assistance Act (Public Law 93-638), as
amended; or any contracts or contract-like instruments
expressly excluded by the regulations issued pursuant
to section 4(a) of this order.
Sec. 9. Effective Date. (a) This order is effective
immediately and shall apply to new contracts; new
contract-like instruments; new solicitations;
extensions or renewals of existing contracts or
contract-like instruments; and exercises of options on
existing contracts or contract-like instruments, as
described in section 8(a) in this order, where the
relevant contract or contract-like instrument will be
entered into, the relevant contract or contract-like
instrument will be extended or renewed, or the relevant
option will be exercised, on or after:
(i) January 30, 2022, consistent with the effective date for the action
taken by the Federal Acquisition Regulatory Council pursuant to section
4(a) of this order; or
(ii) for contracts where an agency action is taken pursuant to section 4(b)
of this order, January 30, 2022, consistent with the effective date for
such action.
(b) As an exception to subsection (a) of this
section, where agencies have issued a solicitation
before the effective date for the relevant action taken
pursuant to section 4 of this order and entered into a
new contract or contract-like instrument resulting from
such solicitation within 60 days of such effective
date, such agencies are strongly encouraged but not
required to ensure that the minimum wages specified in
sections 2 and 3 of this
[[Page 22838]]
order are paid in the new contract or contract-like
instrument. But if that contract or contract-like
instrument is subsequently extended or renewed, or an
option is subsequently exercised under that contract or
contract-like instrument, the minimum wages specified
in sections 2 and 3 of this order shall apply to that
extension, renewal, or option.
(c) For all existing contracts and contract-like
instruments, solicitations issued between the date of
this order and the effective dates set forth in this
section, and contracts and contract-like instruments
entered into between the date of this order and the
effective dates set forth in this section, agencies are
strongly encouraged, to the extent permitted by law, to
ensure that the hourly wages paid under such contracts
or contract-like instruments are consistent with the
minimum wages specified in sections 2 and 3 of this
order.
Sec. 10. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or
the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
(Presidential Sig.)
THE WHITE HOUSE,
April 27, 2021.
[FR Doc. 2021-09263
Filed 4-29-21; 8:45 am]
Billing code 3295-F1-P
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</html>Indexed from Federal Register on April 30, 2021.
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