The Federal Rule, Implemented by the Dol, Applies to Federal Contracts Nationwide and Is Projected to Benefit Hundreds of Thousands of Workers
California Attorney General Rob Bonta has joined a coalition of 22 attorneys general in filing an amicus brief to the Ninth Circuit Court of Appeals, supporting the U.S. Department of Labor’s petition for a rehearing en banc regarding a federal minimum wage rule for contractors.
The rule, implemented in 2022, raised the hourly wage for federal contractors to $15.00, with scheduled annual increases. As of January 1, the rate stands at $17.20 and will rise to $17.75 in 2025.
The attorneys general argue that the wage increase, established under a 2021 executive order by President Joe Biden, is backed by comprehensive data and consistent with the DOL’s legal authority. The brief emphasizes the economic and social benefits of fair wage standards, including improved productivity, reduced turnover, and enhanced service quality resulting from better employee morale.
The coalition of attorneys general includes representatives from Illinois, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and the District of Columbia.
“In California, we understand that fair wages and robust worker protections are good for business—it’s why we have the fifth-largest economy in the world,” said Attorney General Bonta in a release. “This commonsense, data-driven rule will help lift workers out of poverty while improving productivity and efficiency. It’s a win-win.”
The federal rule, implemented by the DOL, applies to federal contracts nationwide and is projected to benefit hundreds of thousands of workers. However, a divided panel of the Ninth Circuit recently ruled that the DOL exceeded its authority and acted arbitrarily in implementing the rule, prompting the current request for en banc review. The panel’s decision contrasts with a Tenth Circuit ruling upholding the same rule.
The amicus brief stresses that rehearing the case is crucial due to the wide-reaching implications for workers and local economies.
