Living Wage for Federal Contractors

Summary#

This bill sets a required minimum hourly pay for most workers employed on federal contracts. The bill creates a multi-step pay schedule for non-tipped workers: $17.00 per hour for the first year after the specified start date, then $19.00, $21.00, $23.00, and $25.00 in successive one-year periods. After that, the rate would rise each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), with rounding up to the nearest $0.05. For tipped employees on federal contracts, the bill sets a separate staged schedule: $13.00, $16.00, $19.00, $22.00, and $25.00 in successive one-year periods, then the same CPI-W adjustment schedule thereafter.

The bill requires contract clauses that let a contracting officer stop work if a contractor is found to pay less than the required wage. Contractors who fail to pay required wages can be made to pay twice the unpaid wages to affected workers. The Secretary of Labor or agency heads may pay underpaid workers directly from amounts withheld on a contract. The Comptroller General must prepare a list of contractors found to have disregarded obligations to workers; firms on that list may be barred from receiving new contracts for three years. Repeated or willful violations can carry civil penalties up to $1,100 per violation. The bill exempts contracts under the Indian Self-Determination and Education Assistance Act when an Indian Tribe or Tribal organization is a party. It also amends the Davis-Bacon Act, the Service Contract Act, and certain procurement wage rules so that those statutes use the new contractor wage rates when higher than existing prevailing wages. The Secretary of Labor must issue regulations within 180 days and must determine CPI-W adjustments at least 90 days before each new annual rate takes effect.

What it means for you#

• If you work for a contractor on a federal contract, this bill would set a required minimum hourly pay schedule for you, including a separate schedule if you are a tipped worker.
• If you are a contractor or subcontractor, you must pay these minimums or face contract termination, withheld payments, civil penalties, and possible placement on a list that can block future contracts for three years.
• If you are an agency that awards contracts, you must include contract language to enforce these wage rules and follow the new wage standards when awarding covered contracts.

Expenses#

No publicly available information on estimated budgetary costs or fiscal effects is included in the bill text or metadata provided.

Proponents' View#

No publicly available information in the bill text or metadata states the sponsors' arguments or views about the measure.

Opponents' View#

No publicly available information in the bill text or metadata states opponents' arguments or views about the measure.