Living Wage for Federal Contractors Act
- Bill Number
- H.R. 9571
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-07-02: 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.
- Last Updated
- 2026-07-10T19:39:53Z
AI-Generated Summary
Purpose This legislation establishes a new federal minimum wage requirement specifically for employees working on or in connection with federal contracts, contracts, subcontracts, or contract-like instruments. It aims to ensure these workers receive progressively higher wages over time, with automatic inflation adjustments thereafter.
Key Provisions
- Minimum Wage Schedule: Requires a basic hourly wage of at least $17.00 beginning three months after enactment, rising annually to $19.00, $21.00, $23.00, and $25.00 over the next four years. After year five, the wage adjusts annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), rounded up to the nearest $0.05.
- Tipped Employees: Sets a separate, lower cash wage schedule starting at $13.00 per hour and increasing to $25.00 over five years, after which it aligns with the general inflation-adjusted rate.
- Enforcement Mechanisms: Mandates contract termination for violations, double damages for unpaid wages, cross-withholding from other contracts, civil penalties up to $1,100 per violation (considering business size and violation gravity), and a three-year debarment list maintained by the Comptroller General. Workers may sue contractors and sureties if withheld funds are insufficient.
- Exclusions: Does not apply to grants or contracts under the Indian Self-Determination and Education Assistance Act involving Indian Tribes or Tribal organizations.
- Regulatory Authority: Directs the Secretary of Labor to issue implementing regulations within 180 days.
- Amendments to Existing Laws: Updates the Davis-Bacon Act, Service Contract Act, and Walsh-Healey Public Contracts Act so that the new wage rate applies where it exceeds prevailing wage determinations.
Significant Changes to Existing Law
- Replaces reliance on the Fair Labor Standards Act minimum wage for covered contracts with a higher, congressionally set schedule that includes future inflation indexing.
- Introduces a new enforcement framework with contract termination, double damages, and debarment not previously applied uniformly to all federal contractors.
- Extends coverage to a broader range of contract-like instruments and activities on federal lands.
Potential Impacts
- Government Agencies: Federal agencies may face higher contract costs, requiring budget adjustments and increased oversight by the Department of Labor and contracting officers.
- Citizens: Workers on federal contracts could receive higher pay, while contractors may pass costs to the government or adjust operations; no direct effects on international relations are specified.
- Contract Administration: Enhanced withholding and penalty provisions could streamline recovery of underpaid wages but increase administrative burdens.
Main Stakeholders Affected
- Federal contractors, subcontractors, and their sureties.
- Employees performing work on or connected to federal contracts, including those paid under special certificates.
- Federal agencies (executive, legislative, judicial, independent regulatory agencies, and the Postal Service).
- The Secretary of Labor and Comptroller General.
- Tipped workers on covered contracts.
Notable Legal, Constitutional, or Political Implications
- Relies on Congress's authority over federal spending and contracting, creating a uniform national floor that preempts lower prevailing wage determinations in certain statutes.
- Enforcement provisions mirror elements of the Davis-Bacon Act but expand liability and remedies, potentially increasing litigation.
- The phased implementation and inflation adjustment introduce predictability while tying future increases to economic data.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Rep. Cleaver, Emanuel [D-MO-5], Rep. McIver, LaMonica [D-NJ-10], Rep. McGovern, James P. [D-MA-2], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Titus, Dina [D-NV-1], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Cohen, Steve [D-TN-9]
Recent Actions
- 2026-07-02: 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.
- 2026-07-02: 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.
- 2026-07-02: Introduced in House
- 2026-07-02: Introduced in House
Bill Versions
- Living Wage for Federal Contractors Act — issued 2026-07-02 — PDF (13 pages)