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HR9571119th CongressWALLET

Living Wage for Federal Contractors Act

Sponsored By: Representative Adams, Alma S. [D-NC-12]

Introduced

Summary

Raises the minimum wage for federal contractors to $25 per hour over five years. The bill would create staged wage increases for contractor employees and then index future increases to the CPI-W inflation measure.

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  • Non-tipped employees of federal contractors would see hourly minimums of $17, $19, $21, $23, and $25 across five one-year periods starting three months after enactment, then annual increases linked to CPI-W.
  • Tipped employees would follow a parallel schedule starting at $13 then rising to $16, $19, $22, and $25 by the fifth year, with later adjustments tied to CPI-W.
  • Agencies could terminate contracts for underpaying workers and workers could recover double unpaid wages and get direct payment from withheld funds. The bill would create a Comptroller General violator list with three-year contracting limits, allow civil penalties up to $1,100 per violation, exempt certain tribal self-determination contracts, and require the Secretary of Labor to issue implementing regulations within 180 days.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Higher pay for federal contract workers

If enacted, this bill would raise minimum hourly pay for people who work on federal contracts. The first 1-year period would start on the first day of the third month after enactment. Non-tipped workers would have staged minimums of $17, $19, $21, $23, and $25 in five successive years. Tipped workers would have staged minimums of $13, $16, $19, $22, and $25 in the same periods. After those five years the Secretary of Labor would set the yearly rate by tying it to CPI-W inflation, using the greater of the prior rate or the prior rate times the CPI-W ratio and rounding up to the next $0.05. The Secretary must determine each new annual amount no later than 90 days before it starts.

Stronger pay enforcement and penalties

If enacted, the bill would give workers stronger ways to recover underpaid wages. Workers could be paid twice the amount of unpaid wages. The Secretary or an agency head could pay workers directly from withheld contract payments and could order cross-withholding from other contracts. Workers could sue if withheld funds are not enough. Contracting officers could terminate work for underpayments and contractors and sureties could be liable for extra completion costs. Repeated or willful violations could bring civil penalties up to $1,100 per violation and published violators could be barred from Federal contracts for three years.

Labor Department rule deadline

If enacted, the Secretary of Labor would have 180 days after enactment to issue final rules needed to implement these contractor wage requirements. This is a timing and implementation rule and does not itself give money to workers.

Sponsors & CoSponsors

Sponsor

Adams, Alma S. [D-NC-12]

NC • D

Cosponsors

  • Rep. Cleaver, Emanuel [D-MO-5]

    MO • D

    Sponsored 7/2/2026

  • Rep. McIver, LaMonica [D-NJ-10]

    NJ • D

    Sponsored 7/2/2026

  • Rep. McGovern, James P. [D-MA-2]

    MA • D

    Sponsored 7/2/2026

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 7/2/2026

  • Rep. Titus, Dina [D-NV-1]

    NV • D

    Sponsored 7/2/2026

  • Rep. Wasserman Schultz, Debbie [D-FL-25]

    FL • D

    Sponsored 7/2/2026

  • Rep. Cohen, Steve [D-TN-9]

    TN • D

    Sponsored 7/6/2026

  • Rep. Grijalva, Adelita S. [D-AZ-7]

    AZ • D

    Sponsored 8/17/2026

Roll Call Votes

No roll call votes available for this bill.

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