Public Policy · Civil Rights·June 4, 2025
Labor Department rescinds Davis-Bacon prevailing wage for federal contractors
Federal contract workers face 25% pay cuts after Trump eliminates minimum wage
Trump revoked Biden executive order setting $17.75/hour federal contractor minimum wage on March 14, 2025
Revocation drops minimum to $13.30/hour under remaining Obama-era executive order
Potential 25% pay cut affects hundreds of thousands of federal contract workers
Davis-Bacon Act prevailing wage requirements remain in effect—they are statutory, not executive
Service Contract Act minimum wage requirements also remain in effect as statutory law
Legal challenges to 2023 Davis-Bacon regulatory updates continue in federal courts
Workers affected include janitors, food service, security guards on federal contracts
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