A federal appeals court has determined that President Joe Biden exceeded his authority by mandating a $15 minimum wage for federal contract workers, according to a Nov. 5 opinion from the 9th U.S. Circuit Court of Appeals. The court found that the executive order issued in April 2021 overstepped presidential powers under the Federal Property and Administrative Services Act (FPASA), which does not grant the president the authority to set minimum wage standards for contractors.
Judge Ryan Nelson, in the majority opinion, stated that the Government’s interpretation would allow the President to require various mandates beyond minimum wage, such as daily vitamins or exercise routines, which would expand the President’s authority significantly. The court also ruled that the Department of Labor’s rule implementing the executive order violated the Administrative Procedure Act by setting wage policies without explicit congressional direction.
The court found that the DOL’s rule was arbitrary and capricious, as it failed to consider alternatives to the $15-per-hour minimum wage mandate. The rule was also deemed to not serve the interests of economy and efficiency, as it would cost federal contractors $1.7 billion and likely be passed on to the government.
In dissent, Judge Gabriel Sanchez argued that Biden’s executive order was within the president’s authority under the FPASA. However, the majority opinion overturned a lower court’s ruling that upheld the executive order, which was initially challenged by five states—Arizona, Idaho, Indiana, Nebraska, and South Carolina.
Nebraska Attorney General Mike Hilgers praised the appellate court’s decision as a victory for separation of powers and the Constitution, emphasizing that the President cannot override Congress’s set minimum wage for federal contractors. The White House and the Department of Justice did not respond to requests for comment on the ruling. Please rewrite this sentence.
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