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Companies seek Supreme Court review of federal contractor minimum wage

October 2024 federal employment law insider
Authors: 

H. Juanita Beecher, FortneyScott

Recreational touring companies are seeking U.S. Supreme Court review of the U.S. 10th Circuit Appeals Court decision upholding President Joe Biden’s $15 minimum wage requirement for federal contractors. The companies claim the wage hike was beyond the president’s authority under the Procurement Act. According to the companies, the “legal problem the mandate creates is straightforward: The Procurement Act simply does not authorize the president to impose a minimum wage on federal contractors.”

According to the petition, the 10th Circuit decision creates a split with the 6th and 11th Circuits over the scope of the Procurement Act, a split with the 5th Circuit over the application of the major questions doctrine, and “runs headlong into the nondelegation doctrine because it interprets the Act to bless the president with ‘nearly unfettered power’ to impose ‘any conditions at any time’ on federal permittees or contractors as long as he considers the conditions necessary.”

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