Minimum wage for workers on new federal contracts will rise to $15 starting Jan. 30



Labor activists will hold a rally in support of a national minimum wage on May 19, 2021, in Washington, D.C.

Federal contractors will be guaranteed a minimum wage of at least 15 dollars an hour in all new contracts with the government by the year 2022, the Department of Labor announced on Monday.

The hourly rate for federal contractors was lifted by the president in April. The change will affect more than 300,000 workers, including food-service employees and nursing assistants who make less than $15 an hour.

The tipped minimum wage for federal contractors will end in four years, as a result of the order.

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Many workers will have to wait longer for a pay raise. Workers on existing federal agreements will not be affected by the increased wage in new contracts.

On a call with reporters on Monday, officials at the Labor Department celebrated a raise.

The acting administrator of the Department of Labor's Wage and Hour Division said that it was a step in the right direction.

We want to make sure that we use the purchasing power of the federal government to ensure fair wages for workers across the country and in the territories.