President Joe Biden exceeded his authority when he set a $15 minimum wage for employees of federal contractors, a federal appeals court ruled Tuesday. In a divided decision, the 9th Circuit Court of Appeals sided with former Arizona Attorney General Mark Brnovich, who filed suit two years ago challenging the wage order, citing what he said would be the effects on the state including its universities that have federal contracts. Appellate Judge Ryan Nelson, writing for the majority in the 2-1 ruling, rejected arguments by the U.
S. Justice Department that Congress, in approving the Procurement Act, gave the president "broad powers'' to decide the policies for providing goods and services to the federal government. The court said to the extent the president does have such powers, they do not include the terms in which the federal government will do business, including how much those contractors must pay their workers.
Nelson acknowledged that similar rules were enacted by both the Obama and Trump administrations. But he noted that neither of these — which had wages below the $15 in the Biden order — were challenged. Federal law going back to 1949 allows the president to establish policies for the executive branch he considers necessary to foster an "economical and efficient system'' to obtain goods and services.
Biden cited that in issuing his executive order requiring federal agencies to put a requirement in all contracts that workers are paid at least $15 an hour. To justi.
