Trump Cuts Minimum Wage Protections for Federal Contractors
Federal Workers

Trump Cuts Minimum Wage Protections for Federal Contractors


Share this post

The Trump administration’s latest attack on federal workers rolls back minimum wage protections, slashing Biden-era pay standards that could affect hundreds of thousands of employees working private sector jobs.

On March 14, President Donald Trump reversed a series of executive orders issued by the previous administration, including Executive Order 14026, which raised the minimum wage to $15 per hour and adjusted for yearly inflation for private sector employees working on federal contracts beginning in 2021.

The wage protections were designed to ensure decent salaries for contracted workers. Under the new policy change, private companies can reduce wages for these employees without regulation from the U.S. Department of Labor. The new minimum wage of $13.30 per hour, based on an older Obama-era rule, has a pay cut of up to 25%, according to the White House and the Center for American Progress.

The Trump administration said the move is “necessary to advance the policy of the United States to restore common sense to the Federal Government and unleash the potential of American citizens.”

The federal government has used its contracting system to set fair wages and working conditions for private sector workers providing goods and services, including military uniforms and office maintenance, which raises standards for minimum wage policies, per CAP.

According to The HR Digest, an estimated 390,000 to 600,000 private sector workers will be affected by the 25% pay cut in industries like construction, concessions, federal lands and other government areas. Private companies with existing contracts will maintain the current minimum wage until those agreements end, but workers under future federal contracts will be paid the reduced rate of $13.30 per hour.

The federal minimum wage remains $7.25 per hour since it was enacted on July 24, 2009, per the DOL. While the new wage standards are higher, many federal contract workers will still feel the cut’s impact, as the previous $17.75 minimum provided a better salary and encouraged more people to apply for government positions.

Trump’s federal worker cuts could impact the nation’s two wealthiest Black counties with median household incomes exceeding $100,000: Charles and Prince George’s counties, part of the Southern Maryland region.

“The revenue has decreased significantly,” Herb Banks, owner of Copper Compass Distillery in the Waldorf area of Charles County, said.

According to The Baltimore Banner and U.S. Census data, the federal government employs approximately 1 in 5 Black workers in the area.

“This could have devastating effects across these communities,” Duke University economist William A. “Sandy” Darity told the outlet.


Share this post
Comments

Be the first to know

Join our community and get notified about upcoming stories

Subscribing...
You've been subscribed!
Something went wrong
Michael Jordan’s Sons Fire Back at Kevin Hart Over Netflix Jokes

Michael Jordan’s Sons Fire Back at Kevin Hart Over Netflix Jokes

Kevin Hart’s new Netflix special Acting My Age sparked reactions on December 5 after Marcus and Jeffrey Jordan responded to the comedian’s bold jokes about their father, NBA legend Michael Jordan.  Hart’s routine included a full segment on MJ’s much-discussed fashion choices, calling him “a horrible dresser” and torching his oversized denim. “Some of the worst jeans I’ve ever seen in my life have been worn by Michael Jordan,” Hart joked, claiming the pockets were so big “you can put a Dell comp


O A

Biggie’s Estate Denies Claims Diddy Charged for His Funeral

Biggie’s Estate Denies Claims Diddy Charged for His Funeral

A new claim from the Netflix docuseries Sean Combs: The Reckoning is drawing attention for how it portrays the events surrounding The Notorious B.I.G.’s funeral. In the series, Kirk Burrowes alleges that Sean “Diddy” Combs initially promised to cover the costs of the service, but ultimately pushed the expense onto Biggie’s estate. Burrowes describes the moment in detail, saying, “Sean said, ‘We’re gonna do the biggest funeral for Biggie that New York has ever seen.’” He claims the enthusiasm sh


O A

Meta Starts Removing Under-16s from Social Media Platforms in Australia

Meta Starts Removing Under-16s from Social Media Platforms in Australia

Tech giant Meta said Thursday it is starting to remove under-16s in Australia from Instagram, Threads and Facebook ahead of the country’s world-first youth social media ban. Australia is requiring major online platforms, also including TikTok and YouTube, to block underage users by December 10, when the new law comes into force. Companies face fines of Aus$49.5 million (US$32 million) if they fail to take “reasonable steps” to comply. “While we are working hard to remove all users who we unde


O A

U.S. dismisses eight immigration judges in New York

U.S. dismisses eight immigration judges in New York

The US Department of Justice has dismissed eight immigration judges in New York City, the association representing them said Tuesday, amid tensions with the courts as President Donald Trump’s administration cracks down on undocumented migrants. According to the National Association of Immigration Judges (NAIJ), which confirmed media reports, the eight judges all worked at 26 Federal Plaza in Manhattan. The address houses a court that reviews cases of migrants attempting to regularize their stat


O A