President Joe Biden’s executive order mandating a $15 minimum hourly wage for federal contractors has become the center of a legal battle that could redefine presidential authority under the Procurement Act. The U.S. government urged the Supreme Court on Monday to let a Tenth Circuit decision stand, defending Biden’s directive as a continuation of a 75-year precedent.
The Department of Labor (DOL), in its filing, argued that presidents have long used the Procurement Act to shape federal contracting policies. According to the DOL, Biden’s move aligns with a history of executive actions—spanning Democratic and Republican administrations—designed to improve efficiency and economy in government procurement.
Historic Authority or Overreach?
The heart of the dispute lies in whether Biden’s wage hike falls within the powers granted by the Procurement Act. The DOL leaned on the D.C. Circuit’s landmark 1979 ruling in AFL-CIO v. Kahn, which upheld President Jimmy Carter’s authority to impose wage and price standards on contractors to combat inflation.
