A federal court in Texas has barred the enforcement of President Biden’s Executive Order (EO 14026) that raised the minimum wage for federal contractors to $15 per hour in a lawsuit brought by Louisiana, Mississippi, and Texas. The $15 minimum wage took effect January 30, 2022, with increases to be published annually, and is currently $16.20 per hour. The court ruled that the Executive Order exceeded the President’s authority under the Procurement Act, and the injunction bars the enforcement of an Executive Order that requires federal contractors to pay their employees a minimum wage as specified by the EO.
The decision is likely to be appealed, and it is unclear what the outcome will be. However, in the meantime, the decision means that federal contractors in these three states will not be required to pay their employees the minimum wage under EO 14026.