
The Supreme Court declined to review a legal challenge to President Joe Biden’s $15 minimum wage rule for federal contractors, leaving the controversial policy in place for the time being.
At a Glance
- The Supreme Court refused to hear a challenge to Biden’s $15 minimum wage for federal contractors.
- Federal appellate courts are divided on the legality of the wage order.
- The Tenth Circuit upheld Biden’s authority, while the Ninth Circuit ruled against it.
- Arkansas Valley Adventure LLC’s appeal was rejected by the Supreme Court.
- The case highlights ongoing debate over presidential power under the Procurement Act.
Supreme Court’s Decision and Its Implications
The United States Supreme Court has declined to review President Joe Biden’s executive order mandating a $15 minimum wage for federal contractors. This decision leaves in place a contentious policy that has sparked debate over the extent of presidential authority. The high court’s refusal to take up the case means that the wage order will remain in effect, at least for the time being, despite ongoing legal challenges in lower courts.
The Supreme Court’s decision not to hear the case comes amid a split in federal appellate courts regarding the legality of the wage order. This division highlights the complex legal landscape surrounding the issue and sets the stage for potential future challenges. The Tenth Circuit Court of Appeals previously ruled in favor of Biden’s authority to enforce the $15 minimum wage, viewing it as an expansion of presidential power under the Procurement Act. Conversely, the Ninth Circuit ruled in November 2024 that Biden lacked the authority for such a mandate and that the Department of Labor did not follow proper procedures in implementing it.
The Supreme Court declined to examine whether President Joe Biden acted within his authority to issue a $15 minimum wage for federal contractors, a legal issue on which federal appellate courts are divided. https://t.co/e3nfXIiDz4
— Bloomberg Law (@BLaw) January 14, 2025
Legal Challenges and Arguments
The case that the Supreme Court declined to review was brought by Arkansas Valley Adventure LLC and the Colorado River Outfitters Association. These businesses argued that the Procurement Act does not grant the President the authority to impose a minimum wage on federal contractors. Their petition to the Supreme Court stated:
“The legal problem the mandate creates is straightforward: the Procurement Act simply does not authorize the President to impose a minimum wage on federal contractors, let alone permittees like AVA who merely operate on federal land.”
The petitioners, represented by the Pacific Legal Foundation, expressed disappointment at the Supreme Court’s decision not to hear their case. They argue that the Tenth Circuit’s ruling represents an overreach of presidential power under the Procurement Act. Meanwhile, the Biden administration maintains that the wage order falls within presidential authority under the Federal Property and Administrative Services Act.
Ongoing Legal Battles and Future Implications
While the Supreme Court’s decision not to review the case is a setback for opponents of the wage order, the legal battle is far from over. A third case challenging the mandate is currently pending in the Fifth Circuit Court of Appeals. This ongoing litigation underscores the continued uncertainty surrounding the scope of presidential authority in this area.
The Department of Labor, which issued the rulemaking to implement the policy, and the Department of Justice, which represented the government in this case, have not commented on the Supreme Court’s decision. Their silence leaves room for speculation about potential future actions or defenses of the wage order.
As the legal landscape continues to evolve, businesses contracting with the federal government will need to navigate the uncertainties surrounding this minimum wage requirement. The Supreme Court’s decision not to intervene at this stage leaves the door open for further legal challenges and potential circuit court resolutions. For now, the $15 minimum wage for federal contractors remains in effect, marking a significant policy win for the Biden administration, albeit one that remains on shaky legal ground.
Sources
- Justices Cement Biden’s $15 Federal Contractor Wage Rule for Now
- US Supreme Court won’t review Biden wage order for some federal contractors
- Supreme Court Rejects Challenge to Biden Federal Contractor Minimum Wage Order