Paul DeCamp Discusses the Impact of the Federal Contractor Minimum Wage Increase

Bloomberg Law

Paul DeCamp, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Washington, DC office, was quoted in Bloomberg Law, in “Punching In: Unemployment Funding Decision Confronts DOL Chief,” by Ben Penn and Paige Smith. (Read the full version – subscription required.)

Following is an excerpt:

Paige Smith: Federal contractors are grappling with how to prepare for President Joe Biden’s executive order raising the minimum wage to $15 an hour for their employees.

Biden mandated that the raise be incorporated into new contract solicitations as of January and into new contracts by March. The Labor Department’s implementing regulations are due by November. …

More immediately, businesses navigating the cutthroat process of bidding for federal contracts must estimate what agencies might expect in terms of pricing.

“That leaves businesses that are currently bidding for contracts wondering whether they should be incorporating these higher rates into bids now,” said Paul DeCamp, who ran DOL’s Wage and Hour Division in the George W. Bush administration.

Bidders normally keep their pricing as low as possible while still remaining profitable, but it’s not known whether federal contracting agencies will prefer bids that incorporate the minimum wage increase earlier on, he said.