Court Ruling Suggests Federal Contract Minimum Wage Applies To Seasonal Permittees

The federal Court of Appeals for the Tenth Circuit recently ruled that the federal contract minimum wage issued by President Biden pursuant to Executive Order 14026 likely applies to seasonal recreational service providers who operate on federal lands, including guides, outfitters and campground operators. The court had initially imposed a temporary injunction which prevented the new minimum wage being applied to seasonal operators. The lawsuit was prompted by President Trump’s prior order exempting seasonal operators from a federal contact minimum wage imposed by President Obama and argued that presidents did not have authority to impose minimum wages under recreational service permits. However, after reviewing the matter, the court withdrew the injunction which resulted in the new minimum wage imposed by President Biden (which is higher than the wage which was imposed by President Obama) applying to these seasonal recreational service providers. A final decision on the issue is still pending.

The new federal contractor minimum wage generally applies to permits and authorizations issued on or after January 30, 2022, or renewed or extended on or after that date. The Department of Labor has stated that, as of January 30, 2022, recreational service contracts are generally covered by either President Biden’s EO 14026 or President Obama’s prior EO 13658. The most significant exemption is for ski areas.