HR Quick Take: Minimum Wage Increasing

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Q: I heard that President Biden is raising the minimum wage – do I need to address that this pay period?

A: President Biden has made worker’s rights and the minimum wage a cornerstone of his stated plans.  It is important to remember that changes in the national minimum wage that would apply to all employers do not happen by executive order but legislation. 

President Biden’s order on the minimum wage is for federal contractors and workers only – not the entirety of the national workforce. 

There were already orders in place that raised those federal worker wages. Biden’s most recent actions direct agencies to review federal worker’s wages and prepare necessary rules to increase those wages to a minimum of $15 an hour.  

More global changes to the minimum wage will depend on legislative approval either nationally or in the individual states.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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