Supreme Court Decides Against Reviewing Challenge To Biden Wage Rule

The Supreme Court has left President Joe Biden’s controversial $15 minimum wage for federal contractors intact for the time being, leaving businesses concerned.

At a Glance

The US Supreme Court declined to review Biden’s $15 minimum wage for federal contractors.
Federal appellate courts remain divided on the legality of the wage order.
The Tenth Circuit’s ruling supports Biden’s authority under the Procurement Act.
Arkansas Valley Adventure LLC’s appeal was rejected by the Supreme Court.

Supreme Court Decision’s Impact

The U.S. Supreme Court has refused to review a challenge to President Joe Biden’s $15 minimum wage rule for federal contractors, leaving the rule in place for now. By upholding the Tenth Circuit’s decision, it affirmed Biden’s use of the Procurement Act to mandate the wage. The ruling supports the argument that presidential authority extends to setting such wage directives for federal contractors, affecting countless businesses and workers.

The decision comes at a time when federal appellate courts have shown a division. In a separate ruling, the Ninth Circuit found that Biden lacked authority for such a mandate. Despite this split in opinions, the Supreme Court’s stance is clear for now.

The Tenth Circuit’s approval is seen by some as an expansion of presidential power, which has been contested in multiple legal circles. The government defended the rule under the Federal Property and Administrative Services Act, insisting on its legality and alignment with national economic policies.

The US 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/ivXBmTRGiM

— Bloomberg Law (@BLaw) January 13, 2025

Business Concerns and Legal Opposition

Pacific Legal Foundation, representing plaintiffs such as Arkansas Valley Adventure LLC, expressed disappointment with the Supreme Court’s decision. They argued that the Procurement Act does not give the President authority to enforce a minimum wage on federal contractors, especially businesses operating federally, such as AVA.

The legal landscape remains complex as there is still a pending case in the Fifth Circuit. Federal appeals courts have split decisions over the rule’s legality, further complicating matters for businesses who argue this imposition is beyond presidential purview.

Looking Ahead

The ruling in favor of Biden’s minimum wage directive has set a precedent, stirring ongoing legal and economic debates. Businesses continue to question the procedural adherence by the Department of Labor in implementing these rules, and additional legal challenges might arise as the full impact of this ruling unfolds. Many eyes are now on the pending Fifth Circuit case anticipating further judicial direction.

The Department of Labor and the Department of Justice have not commented on the decision, while businesses and their legal representatives consider future actions in response to the judicial affirmation of the wage rule.