Trump Cuts Minimum Wage for Federal Contracts

President Donald Trump issued an executive order March 14 ending the obligation for federal contractors to pay workers a $17.75 hourly minimum wage.

The action overturns an order issued by then-President Joe Biden in 2021 that increased the federal contractor minimum wage.

Biden initially raised the minimum wage to $15 an hour with automatic annual updates, and it rose to $17.75 in January this year.

Federal contractors employ approximately 20% of the U.S. workforce.

For contracts signed before Biden’s order took effect Jan. 30, 2022, contractors must pay workers $13.30 an hour under an Obama-era executive order.

Other contractors are only be required to pay the federal minimum wage of $7.25 an hour or state minimum wages up to $17.50 an hour.

Connecticut’s $16.35 hourly minimum wage is tied to the U.S. Department of Labor’s Employment Cost Index.