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
Messi makes MLS history winning second consecutive Golden Boot, playoffs set

Messi makes MLS history winning second consecutive Golden Boot, playoffs set

Inter Miami's Lionel Messi won his second consecutive MLS Golden Boot award on Saturday after the defending champions took second place in the Eastern Conference with a wasteful 3-3 draw against Charlotte on the final day of the regular season. The Argentine superstar did not score but set up the first two goals at Miami's Nu Stadium, both from corners, to help secure his club a home-field advantage for the first two playoff rounds. Messi's 26 goals this season were enough to make him the firs


O A

Erling Haaland gets his pee analysed: How smart urinals are used to monitor player performance

Erling Haaland gets his pee analysed: How smart urinals are used to monitor player performance

In the world of football, the biggest stars are constantly seeking a marginal edge on the training ground. Now, the hunt for these gains has reached the restroom. A new phenomenon is spreading through the training facilities of top European clubs. The so-called 'S-urinal' (where the 'S' stands for 'smart') is making inroads, equipped with touchscreens and sensors that analyse players' urine. Elite football clubs are frequently turning to 'smart urinals' to gain a competitive edge in sports scie


O A

Vance tries to build his own 2028 brand after midterm rout

Vance tries to build his own 2028 brand after midterm rout

Late in his blitz to salvage Republicans' midterm fortunes, Vice President JD Vance shifted strategy. He talked less about President Donald Trump and more about the issues that define his own political identity. Vance argued the case for Republicans, who lost control of Congress in Tuesday’s vote, almost exclusively through the lens of his policy portfolio, according to a Reuters review of half a dozen speeches since the ‌Republican convention in September. He bypassed Trump's signature polici


O A

Chris Rock Says Porn Addiction Destroyed His Marriage

Chris Rock Says Porn Addiction Destroyed His Marriage

Chris Rock revealed in a candid interview Tuesday that a past addiction to pornography played a significant role in the dissolution of his marriage and his subsequent decade-long hiatus from the director’s chair.  Speaking with GQ for its “Men of the Year” issue, the 61-year-old entertainer admitted he has been clean from the habit for approximately six years, a change he credits with helping him regain his personal and professional footing.  Rock, who recently directed the comedy-drama “Misty


O A