Biden $15 minimum wage for federal contractors takes effect raises pay for hundreds of thousands

President Biden's Executive Order 14026, signed April 27, 2021, takes effect. The minimum wage for federal contractors rises to $15 per hour for the first time. The order covers workers who receive federal contract dollars, including janitors, security guards, cafeteria workers, and other employees in federally contracted workplaces across the country. An estimated 390,000 workers receive raises. The wage is also indexed to inflation, so it automatically increases each year. By 2023, the minimum wage for federal contractors reaches $16.20 per hour. Biden further raises the minimum wage for all federal employees to $15 per hour in 2021 through a separate executive order, affecting approximately 20,000 direct federal employees.