President Biden exceeded his authority by issuing Executive Order 14026 raising the federal contractor minimum wage to $15 per hour, a federal appeals court ruled November 5 in Nebraska v. Su. The U.S. Court of Appeals for the Ninth Circuit also held that the U.S. Department of Labor acted arbitrarily and capriciously when it published implementing regulations. The Ninth Circuit sent the case back to the district court so it can block enforcement of the order and regulations.
Five states—Arizona, Idaho, Indiana, Nebraska, and South Carolina—had sued, arguing that the Federal Property and Administrative Services Act (nicknamed the Procurement Act) does not give the President the authority to increase the minimum wage for federal contractors.
The Ninth Circuit did not explain how broad the injunction should be, so the district court has some discretion in deciding whether to enjoin enforcement of the rule nationwide or only in the states that sued.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.