Since 2025, the administration’s moves have pushed pay downward instead of up. It scrapped the $17+ minimum for federal contract workers, letting wages fall back toward $13—and even $7.25 in some cases. It abandoned the noncompete ban that would have lifted average earnings, kneecapped union enforcement by sidelining the NLRB and weakening organizing protections, and revoked rules that help workers keep their jobs on successor contracts. Tariff hikes raised prices, cutting real take-home pay. And it rolled back transparency measures that are proven to boost wages.
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¶ Trump and republicans rolled back wage floors for federal contract workers
- On March 14, 2025, President Trump issued Executive Order 14236 revoking Biden’s Executive Order 14026, and the Labor Department announced it would stop enforcing the higher federal-contractor minimum wage and move to rescind the implementing rule. (federalregister.gov)
- As a result of the revocation, covered “old” contracts default to Obama‑era rates (e.g., $13.30 in 2025) and others to the $7.25 federal minimum where applicable, eliminating the $17+ wage floor and tip protections that had been in force under EO 14026. (federalregister.gov)
- Reuters reported the rescission and its effect on contractor pay and on related Biden orders tied to labor standards in federal procurement. (reuters.com)
¶ Trump and republicans preserved restrictive noncompetes that suppress wages
- In September 2025, the FTC—under new leadership—moved to dismiss its appeal and dropped defense of the 2024 nationwide noncompete ban, leaving the rule unenforceable. (ftc.gov)
- Reuters likewise reported the administration’s withdrawal of legal defense of the ban. (reuters.com)
- Empirical research shows that banning noncompetes raises wages for low‑wage workers (e.g., Oregon’s ban increased hourly pay 2–3% on average), and broader bans are associated with sizable aggregate earnings gains. (pubsonline.informs.org)
- The FTC’s own analysis estimated a noncompete ban would raise average worker earnings by about $524 per year—benefits forfeited when the ban is abandoned. (ftc.gov)
¶ Undermining worker bargaining power and union enforcement
- President Trump fired NLRB Democratic member Gwynne Wilcox; the Supreme Court allowed her removal to stand pending litigation, leaving the Board without a quorum and “hundreds of cases” unresolved—stalling union certifications and remedies that lift pay. (reuters.com)
- On March 27, 2025, an executive order excluded wide swaths of agencies from the federal labor‑management relations program, curtailing collective‑bargaining rights for many federal workers. (whitehouse.gov)
- The administration suspended enforcement of a Biden‑era rule expanding organizing protections for H‑2A farmworkers, weakening leverage for some of the lowest‑paid workers in the economy. (reuters.com)
- Trump also revoked EO 14055 on “Nondisplacement,” ending successor‑contractor obligations to offer qualified incumbent service workers a right of first refusal—reducing job continuity and bargaining power for SCA‑covered workers. (dol.gov)
- In April 2025, the White House imposed a 10% universal tariff baseline (with higher country‑specific rates), and later added product‑specific tariffs (e.g., lumber and certain furniture), all of which raise consumer prices. (whitehouse.gov)
- Nonpartisan analysis finds that tariff hikes reduce real household income by raising prices; CBO estimated prior tariff waves lowered average real household income and GDP, and NBER research shows U.S. consumers bore the brunt through higher prices and reduced real incomes. (cbo.gov)
¶ Removing pay‑equity and transparency measures tied to federal contracting
- EO 14148 (Jan. 20, 2025) rescinded EO 14069 on pay equity and transparency, and the FAR Council withdrew its proposed rule that would have curbed salary‑history inquiries and required pay range disclosures in federal contracting. (whitehouse.gov)
- Evidence indicates salary‑history bans raise wages—especially for women and Black workers—by reducing the anchoring of new pay to prior (often suppressed) wages. (sites.bu.edu)