A Raise The Minimum Wage Sign At Worker's Rights Protest Or Rally

On February 4, 2025, the Fifth Circuit Court of Appeals upheld the Biden administration’s $15 per hour minimum wage for federal contractors — a proposal that was introduced in 2022. According to JD Supra reporting, a three-judge panel ruled that this minimum wage rule was permissible under federal law, thereby reversing a previous federal district court ruling.

Prior to this increase, minimum wage for federal contractors was $10.95. When the Biden administration proposed the increase, Louisiana, Mississippi, and Texas responded with lawsuits claiming the order exceeded the president's statutory authority. But officials argue raising the mini mum wage can boost worker morale, enhance productivity, and reduce turnover. 

According to reports, many states have their own minimum wage, which vary widely. But as of January 1, 2025, the minimum wage for federal contractors is $17.75. Employers that have contracts with federal agencies should keep track of both state and federal minimum wage laws, as well as union contracts that may dictate wages for workers.