Supreme Court Decision Sparks New Debate on Federal Minimum Wage Policy

The Supreme Court has declined to hear a case on President Joe Biden’s $15 minimum wage as legal battles unfold.

At a Glance

The US Supreme Court declined to review President Joe Biden’s $15 minimum wage rule for federal contractors.
Federal appellate courts are divided on the legality of the wage order, creating a circuit split.
The Ninth Circuit ruled that Biden lacked authority while the Tenth Circuit ruled otherwise.
A third case challenging the mandate is pending in the Fifth Circuit.

Supreme Court Decision

The US Supreme Court recently dismissed a case challenging President Biden’s $15 minimum wage for federal contractors, letting the wage rule stand for now. This decision leaves in place a Biden administration policy aimed at raising wages for workers on federal contracts. The case, Bradford v. US Dep’t of Labor, was watched closely, especially as various businesses believed that the Procurement Act did not authorize such an order.

The initial lawsuit was brought by Arkansas Valley Adventure LLC and the Colorado River Outfitters Association, with representation from the Pacific Legal Foundation. They argued that the President overstepped his authority under the Procurement Act. The Department of Justice defended the government’s position, asserting the wage order falls within presidential authority.

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

Circuit Split Creates Confusion

The legal landscape surrounding this mandate remains complex. Federal appellate courts are split on the issue. The Ninth Circuit ruled in November 2024 that Biden lacked the authority for the mandate and criticized the Department of Labor (DOL) for not following proper procedures. However, the Tenth Circuit found otherwise, backing Biden’s authority under the Procurement Act, an expansion seen by some as increasing presidential power excessively.

Another case challenging the mandate is pending in the Fifth Circuit. This case could add further complications to the legal controversy. The bidders remain hopeful for a different outcome.

Federal Challenges and Responses

The Department of Labor issued rulemaking to implement the minimum wage policy, leading to numerous lawsuits. As businesses argue the Procurement Act does not authorize this mandate, split decisions emerged from federal appeals courts, leading to appeals for clarity and resolution from the Supreme Court.

These developments spotlight an ongoing debate over federal power and its impact on businesses across the nation. Indeed, pending cases and divided opinions suggest that further judicial scrutiny may be inevitable on this issue.