Living Wage for Federal Contractors Act

The Living Wage for Federal Contractors Act mandates that employees working on federal contracts receive a basic hourly wage that starts at $17.00 and increases annually to $25.00, with future adjustments tied to inflation. This requirement applies to all workers performing services or labor on federal contracts, including those at any subcontracting tier, while offering a slightly lower initial rate for tipped employees. To enforce compliance, the bill allows the government to terminate contracts for wage violations, requires contractors to repay double the amount of unpaid wages, and prohibits future contract awards to firms repeatedly found in violation. Additionally, the legislation updates existing wage standards under the Davis-Bacon and Service Contract Acts to ensure they align with the new federal living wage floor.