United States President, Joe Biden has signed an Executive Order which raises the minimum wage for federal contractors and tipped employees working on government contracts to $15(N5,700) an hour.
The raise from $10.95 an hour will begin in January 2022, and would be implemented no later than March. Biden has also signed a separate order to raise the minimum wage to $15 an hour for federal employees.
The new order also directs federal agencies to raise the tipped minimum hourly wage to $15 by 2024 and to ensure that tipped employees working on federal contracts earn the same minimum wage as other employees on federal contracts.
The new order raises the minimum wage to the same level for federal contract workers with disabilities, and it includes a cost-of-living increase every year beginning in 2022.
The increase builds on a 2015 executive order signed by President Barack Obama that raised the minimum wage for federal contractors, including tipped workers and workers with disabilities, to its current level.
