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Federal contractors likely to face new mandates, oversight

April 2021 employment law letter
Authors: 
the editors of Federal Employment Law Insider

In the wake of outspoken opposition to the Protecting the Right to Organize (PRO) Act within the Democratic caucus in the Senate and the union defeat at Amazon, union leaders and prolabor politicians are likely to move to use Executive Orders and agency actions to achieve some of their goals. The Executive Branch has broad authority over companies that do business with the government. As a result, federal contractors have often been a kind of “laboratory” for social change with respect to measures that couldn’t win a Congressional majority for universal application.

$15 minimum wage

The objective most likely to be achieved is a $15 minimum wage for all workers on federal contracts. As one of President Joe Biden’s and progressive Democrats’ primary goals, this would largely apply to the small army of low-wage service workers who do everything from cleaning the buildings to preparing the meals to staffing the call centers at the various federal agencies. Advocates are also lobbying for the minimum wage to be indexed to inflation and a broader paid leave.

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