- Feb 22, 2017
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Biden steps out of bounds with his wage hike for federal contractors
The rule affects more than government workers, and Biden has no authority to impose a wage increase on private businesses.
thehill.com
As ordered by the Biden administration, the Department of Labor’s new minimum wage hike, which requires federal agencies to pay their contractors a $15-per-hour minimum wage, has officially taken effect.
At first glance, the policy appears to impact only government employees, or at least that’s how it’s being presented to the public. But the fine print tells a different story — and reveals how much the president has exceeded his constitutional authority.
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Putting aside for a moment the economic burden placed on private companies, the fact is the executive branch does not have authority to impose a mandatory wage increase on private businesses unless Congress passed the rule — the only branch constitutionally allowed to make laws.
Congress has not made any law that would control wages for employers whose only tie to the federal government is federal land use. But the executive branch did what it often does and searched for loopholes, stretching the meaning of “federal contractor.”
In this instance, President Biden used a 1940s-era procurement statute to sidestep Congress, displace at least five wage-related laws, and give the Department of Labor policymaking power over anyone with any financial relationship with the federal government.
Opinion:
I have not read about any legal challenges to these new rules, but I sure hope they are coming. If he wants to pay people that work directly for the Govt a set amount that is fine, but those that just happen to pay the Govt for use of land cannot be considered contractors.