Photo of Lorraine M. CamposPhoto of Jim FloodPhoto of Kris D. MeadePhoto of Rebecca SpringerPhoto of Jillian AmbrosePhoto of Rina Gashaw

On April 27, 2021, President Biden signed an Executive Order (the “EO”) increasing the hourly minimum wage for certain federal government contractors (and subcontractors) to $15.00 per hour ($10.50 per hour for tipped workers), beginning January 30, 2022. Beginning in January 2023, the applicable minimum wage rate will be adjusted annually based on the annual percentage increase in the Consumer Price Index.

The executive order supersedes the Obama-era Federal Minimum Wage Executive Order 13658 and, like that EO, applies to contracts (and subcontracts) for concessions, those covered by the Service Contract Act, or Davis Bacon Act, as well as contracts in “connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.” The minimum wage requirement applies to all employees “working on or in connection with” a covered contract.

The EO also increases the minimum wage for tipped employees working on covered contracts or subcontracts to at least $10.50 per hour beginning January 30, 2022, with increases to 85% of the then existing required wage for covered non-tipped employees in January 2023 and 100% of the then existing required wage for covered non-tipped employees in January 2024. Amounts earned on account of tips will be combined with the hourly wage paid by the employer to determine whether a tipped employee’s wage satisfies the minimum wage requirements.

Implementing regulations will be issued by the Department of Labor (DOL) no later than November 24, 2021, and will provide more guidance on contractors’ obligations for compliance. A key question is whether the DOL will provide greater guidance as to what constitutes work performed “in connection with” a covered contract, as that phrase will determine the ultimate breadth of the new EO. The final rule implementing the Obama-era mandate, referenced above, utilized the same “in connection with” language and provided some clarification regarding how to interpret that phrase. It remains to be seen whether the regulations implementing this new EO will adopt the same guidance. Solicitations for covered contracts issued sixty days after the regulations must incorporate the new minimum wage requirement in the solicitation; assuming the regulations are issued by the November date specified in the EO, new covered contracts, as well as contract extensions or renewals of an existing contract, entered into on or after January 30, 2022 must include the new minimum wage requirements.

Employers with covered contracts or subcontracts should review their current compensation practices to determine the impact of the EO and what, if any, wage rate adjustments they may need to make by January 30, 2022 to ensure compliance with the new requirements.

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Photo of Lorraine M. Campos Lorraine M. Campos

Lorraine M. Campos is a partner and member of the Steering Committee of Crowell & Moring’s Government Contracts Group and focuses her practice on assisting clients with a variety of issues related to government contracts, government ethics, campaign finance, and lobbying laws. Lorraine…

Lorraine M. Campos is a partner and member of the Steering Committee of Crowell & Moring’s Government Contracts Group and focuses her practice on assisting clients with a variety of issues related to government contracts, government ethics, campaign finance, and lobbying laws. Lorraine regularly counsels clients on all aspects of the General Services Administration (GSA) and the U.S. Department of Veterans Affairs (VA) Federal Supply Schedule (FSS) programs. She also routinely advises clients on the terms and conditions of these agreements, including the Price Reduction Clause, small business subcontracting requirements, and country of origin restrictions mandated under U.S. trade agreements, such as the Trade Agreements Act and the Buy American Act. Additionally, Lorraine advises life sciences companies, in particular, pharmaceutical and medical device companies, on federal procurement and federal pricing statutes, including the Veterans Health Care Act of 1992.

Lorraine has been ranked by Chambers USA since 2013, and she was recognized by Profiles in Diversity Journal as one of their “Women Worth Watching” for 2015. Additionally, Lorraine is active in the American Bar Association’s Section of Public Contract Law and serves as co-chair of the Health Care Contracting Committee.

Lorraine joined the firm from Reed Smith, where she chaired their Government Contracts & Grants Team since 2010. Prior to that, she worked as a consultant for Grant Thornton, where she advised the Intelligence Community, analyzed the Department of Defense utility privatization program, and performed numerous Circular A-76 studies for the Office of Management and Budget.

Photo of Jim Flood Jim Flood

Jim Flood is a partner in Crowell & Moring’s Washington, D.C. office and assists health care, energy, and financial services clients with legal, legislative, and regulatory issues. He is also chair of the firm’s Government Affairs Group.

A former federal prosecutor and counsel…

Jim Flood is a partner in Crowell & Moring’s Washington, D.C. office and assists health care, energy, and financial services clients with legal, legislative, and regulatory issues. He is also chair of the firm’s Government Affairs Group.

A former federal prosecutor and counsel to Senator Charles E. Schumer (D-NY), Jim has more than 20 years of experience assisting clients facing issues before the White House, Congress, the U.S. Department of Health and Human Services (HHS), the Centers for Medicare & Medicaid Services (CMS), the U.S. Department of Justice (DOJ), the U.S. Drug Enforcement Administration (DEA), the U.S. Food and Drug Administration (FDA), and other federal agencies. He also works with the firm’s Healthcare Group and healthcare fraud practice team to counsel clients on issues related to Medicare, Medicaid, Part D, long-term care, health care fraud, the False Claims Act (FCA), and the anti-kickback statute.

In the area of antitrust, he has advised and guided companies through public policy issues affecting mergers in the healthcare and technology sectors. In the energy sector, Jim has experience navigating renewable energy regulatory and policy matters, and he served as the General Counsel for the American Wind Energy Association (AWEA), the American Clean Skies Foundation (ACSF), and the Advanced Biofuels Association (ABFA).

In 2023, Jim was again named a “Top Lobbyist” by The Hill.

Prior to joining Crowell & Moring, Jim led all federal and state government relations for a Fortune 400 health care company with $6 billion annual revenue. Jim led the Government Affairs Department and oversaw the company’s advocacy before Congress, HHS, CMS, DEA, key trade groups, and engaged with the White House on regulatory issues. Previously, he assisted clients at Brownstein Hyatt Farber Schreck LLP, where he provided strategic government relations advice and counsel to Fortune 500 companies in the health care, financial services, and energy sectors. Prior to that, he served as an Assistant U.S. Attorney at DOJ, where he led federal and local criminal investigations of U.S. corporations and individuals, prosecuted federal white collar grand jury criminal investigations into health care fraud, securities fraud, mortgage fraud, and government contracts fraud. He tried approximately 80 federal or local jury or bench trials during his time at DOJ, and also led a two-year nationwide FCA investigation into the sale of defective bulletproof vests to federal law enforcement agencies.

Photo of Kris D. Meade Kris D. Meade

Kris D. Meade is co-chair of Crowell & Moring’s Labor & Employment Group. He is also a member of the firm’s Management Board and Executive Committee. He counsels and represents employers in the full range of employment and traditional labor law matters, including…

Kris D. Meade is co-chair of Crowell & Moring’s Labor & Employment Group. He is also a member of the firm’s Management Board and Executive Committee. He counsels and represents employers in the full range of employment and traditional labor law matters, including individual and class action lawsuits filed under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, ERISA, and companion state statutes. Kris represents employers in connection with union organizing campaigns, collective bargaining, labor arbitrations, and unfair labor practice litigation. In 2020, Chambers USA recognized Kris as a leading labor and employment lawyer.

Photo of Rebecca Springer Rebecca Springer

Rebecca Springer joined Crowell & Moring in 1999 and currently serves as partner in the Labor & Employment Group. Her practice focuses on labor and employment litigation and counseling, particularly in the area of Office of Federal Contract Compliance Programs (OFCCP) compliance. Rebecca…

Rebecca Springer joined Crowell & Moring in 1999 and currently serves as partner in the Labor & Employment Group. Her practice focuses on labor and employment litigation and counseling, particularly in the area of Office of Federal Contract Compliance Programs (OFCCP) compliance. Rebecca has extensive experience conducting audits of personnel practices, preparing Affirmative Action Plans, and counseling clients on affirmative action issues. She also has experience conducting statistical analyses of compensation and other personnel practices for purposes of class action litigation, OFCCP compliance audits, and employer self-audits, and frequently teams with labor economists to analyze compensation and advise clients on potential risks and proactive measures to address compensation disparities.

Photo of Jillian Ambrose Jillian Ambrose

Jillian Ambrose is a Labor & Employment Group associate in Crowell & Moring’s Washington, D.C. office. Prior to joining the firm, Jillian served as a law clerk to Judge Anthony Epstein and then to Judge Steven M. Wellner, both of the D.C. Superior…

Jillian Ambrose is a Labor & Employment Group associate in Crowell & Moring’s Washington, D.C. office. Prior to joining the firm, Jillian served as a law clerk to Judge Anthony Epstein and then to Judge Steven M. Wellner, both of the D.C. Superior Court. Before law school, Jillian was an analyst in the human capital practice of an international consulting firm, where she provided management consulting services to a portfolio of federal agency clients.

Jillian’s practice focuses on litigation of individual and class actions arising in all areas of labor and employment law. She provides counseling to clients on a variety of employment issues, including non-competition/non-solicitation agreements and contract disputes. She also assists clients with affirmative action compliance, preparing affirmative action plans, analyzing compensation practices, and providing counseling in connection with Office of Federal Contract Compliance Programs audits. Jillian has substantial experience in representing employers in wage & hour litigation and in conducting audits and compliance review of employer wage & hour policies and procedures.

Photo of Rina Gashaw Rina Gashaw

Rina M. Gashaw is an associate in the firm’s Washington, D.C. office, where she is a member of the Government Contracts Group. Rina’s practice focuses on a range of government contracts issues, including government investigations, client counseling, and providing government contracts due diligence…

Rina M. Gashaw is an associate in the firm’s Washington, D.C. office, where she is a member of the Government Contracts Group. Rina’s practice focuses on a range of government contracts issues, including government investigations, client counseling, and providing government contracts due diligence in transactional matters. Her practice also includes bid protests before the Government Accountability Office and the U.S. Court of Federal Claims.