Upcoming Increase in Minimum Wage for Federal Contractors – NPRM Released

Federal Budget

On April 27, 2021, President Joe Biden signed an executive order raising the minimum hourly wage for federal contractors to $15 beginning on January 30, 2022. The current hourly minimum is $10.95 under an executive order that President Barack Obama signed in 2014. Today, the Secretary of Labor released the notice of proposed rulemaking around implementing the new executive order (the new order requires regulations to be issued on or before November 24, 2021). It appears that the new order will have a muted impact on the sector overall.

What does this regulatory development mean for you as a health care provider? A provider's participation in Medicare or Medicaid does not make you a federal contractor. The same is true with respect to participation in TRICARE following the issuance of new regulations last year. However, if you are currently in a contract with the U.S. Department of Veterans Affairs or plan to be in the future, the new executive order could impact you depending on the type of contract and when you enter into or renew such contracts. AHCA is currently analyzing the proposed rule, and will provide comments within the 30 day deadline (comment period closes August 23, 2021) the Agency has requested.  
 
AHCA will keep its members apprised of any further information that might impact you on this matter.