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The United States Department of Labor reported that more than 300, 000 maintenance, safety and childcare workers will receive a raise starting next year with a new minimum wage of $ 15 dollars an hour for federal contractors.
The new compensation scheme stems from an April executive order by President Joe Biden that increases the salary of federal workers . The base salary of $ 15 dollars for federal contractors will be indexed to inflation and increase over the years following.
In accordance with the mandate, the new pay floor becomes effective for any federal contract beginning on or after 30 January 2022 . The rule stipulates that suppliers of equipment and guides in federal zones, as well as workers with disabilities who can be paid less than the minimum wage will have their salary increased to $ 15 dollars per hour.
In addition, in accordance with the regulations from 2024, workers who receive tips on federal contracts must earn at least that amount. These workers may be paid less than others because employers assume tips will make up the difference.
“Federal contract workers are essential ”, The Secretary of Labor, Marty Walsh, informed the media. “The people we are going to cover clean and maintain the federal buildings. They provide childcare for children , repair roads and bridges across the country, ”he said.
Government authorities said that the new provision applies to all employees of companies that have contracts with the government , not just those who work in federal buildings.
The The move being made by the administration of President Joe Biden is aimed at reducing existing wage gaps across the United States. This will allow thousands of workers to provide better living conditions for their families and leave precariousness behind.
Although many companies have increased wages of employees, the compensation they give is not based on the current federal minimum wage, which in many cases is lower. This year, various companies in the service and hospitality sector set as a minimum wage $ 15 dollars per hour.
Increasing the salary of government employees could indirectly boost income from other workers , said Ben Zipperer, an economist at the Institute for Economic Policy. He pointed to research showing that when Amazon raised his starting salary to $ 15 dollars an hour in 2018, led close competitors to increase their salary as well .
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