To establish a minimum wage for all Federal contractors, and for other purposes.
About This Bill
Committee
Latest Action · July 2, 2026
Referred to the Committee on Education and Workforce, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Living Wage for Federal Contractors Act would establish a new minimum wage requirement for workers employed by federal government contractors. The bill sets an initial minimum wage of $17 per hour, increasing in $2 annual increments over five years until reaching $25 per hour, after which the wage would adjust annually based on inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers. Tipped employees would follow a similar schedule starting at $13 per hour and reaching $25 per hour, then adjusting for inflation thereafter. The bill affects millions of workers employed by federal contractors across the country and applies to all federal contracts for goods, services, and work on federal lands. Enforcement mechanisms include contract termination for wage violations, double damages owed to underpaid workers, civil penalties up to $1,100 per violation, and a debarment list preventing violators from receiving federal contracts for three years. The bill also amends existing prevailing wage laws so that Davis-Bacon, Service Contract Act, and procurement contracts must meet whichever is higher: existing prevailing wage determinations or the new federal contractor minimum wage established by this legislation.
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