Idaho Attorney General Raúl Labrador announced a significant legal victory on Tuesday in the case of Nebraska v. Su. This case, initiated by the states of Nebraska, Idaho, Indiana, and South Carolina, contested the legality of the federal contractor minimum wage policy. The U.S. Court of Appeals for the Ninth Circuit sided with the plaintiffs, ruling that the Biden Administration had acted unlawfully and overstepped its statutory authority.
Attorney General Labrador stated, "Our victory is a clear win for the separation of powers and the Constitution." He emphasized that setting a federal minimum wage falls under Congress's jurisdiction alone and criticized presidential actions in this regard: "There is nothing in the Constitution that allows the President to create a minimum wage for federal contractors."
The contested policy was introduced early in President Biden's term, establishing a $15 minimum wage for federal contractors nationwide. It utilized similar authority as that used to mandate COVID-19 vaccines for federal contractors. The decision in Nebraska v. Su marks the first instance where a federal appellate court has declared such a minimum wage invalid.
The court’s panel ruling is available for public reading.