Topics | Executive Order 13658 | Executive Order 14026 |
---|---|---|
Effective Date | On or after January 01, 2015. | On or after January 30, 2022. |
Required Minimum Wage Rate | $11.25 for calendar year 2022. (The EO 13658 hourly minimum wage in effect from January 01, 2015 through December 31, 2015 was $10.10 ($4.90 for tipped employees). That rate has increased annually based on inflation. For calendar year 2021, the minimum wage rate is $10.95 ($7.65 for tipped employees). For calendar year 2022, the rate will be $11.25 ($7.90 for tipped employees). |
$15.00 for calendar year 2022, beginning on January 30, 2022. (The EO 14026 hourly minimum wage in effect from January 30, 2022 through December 31, 2022 is $15.00 ($10.50 for tipped employees). That rate will increase annually based on inflation, beginning January 1, 2023.) |
Coverage of "New Contracts" | If the contract was awarded on or between January 1, 2015 and January 29, 2022, and the contract is not renewed or extended on or after January 30, 2022, Executive Order 13658 generally applies to the contract. Coverage is not triggered by the unilateral exercise of a pre-negotiated option to renew or extend an existing contract by the Federal Government. | If the contract is entered into on or after January 30, 2022, or the contract is renewed or extended (pursuant to an exercised option or otherwise) on or after January 30, 2022, Executive Order 14026 generally applies to the contract. Coverage is triggered by the exercise of an option on or after January 30, 2022. |
Coverage of Recreational Service Contracts on Federal Lands | Executive Order 13838 exempted contracts in connection with seasonal recreational services and seasonal recreational equipment rental offered for public use on Federal lands from coverage of Executive Order 13658. Executive Order 13838 is rescinded as of January 30, 2022, and such contracts will therefore generally be covered by either Executive Order 13658 or Executive Order 14026 depending on the date that the relevant contract was entered into, renewed, or extended (as well as appropriate implementing actions taken by the relevant contracting agency). | As of January 30, 2022, such contracts will be subject to the minimum wage requirements of either Executive Order 13658 or Executive Order 14026 depending on the date that the relevant contract was entered into, renewed, or extended (as well as appropriate implementing actions taken by the relevant contracting agency). |
Minimum cash wage for tipped employees | $4.90 an hour beginning on January 1, 2015. For each subsequent year, the minimum cash wage for tipped employees has increased by the lesser of $0.95 or the amount necessary for the hourly cash wage to equal 70% of the applicable Executive Order 13658 wage for such year rounded to the nearest multiple of $0.05. For calendar year 2021, the Executive Order 13658 minimum cash wage rate for tipped employees is $7.65 per hour. For calendar year 2022, the Executive Order 13658 minimum cash wage rate for tipped employees will be $7.90. | $10.50 an hour beginning on January 30, 2022. Executive Order 14026 gradually phases out a contractor's ability to claim the tip credit for covered contract work, raising the minimum cash wage for tipped employees to 85% of the order's applicable minimum wage on January 1, 2023, rounded to the nearest multiple of $0.05, and to 100% of the order's applicable minimum wage on January 1, 2024. |
Exclusion for independent agencies | Executive Order 13658 "strongly encouraged" but did not require independent agencies as defined in 44 U.S.C. 3502(5) to comply with its requirements. | Executive Order 14026 generally applies to independent agencies, such as the Bureau of Consumer Financial Protection, National Labor Relations Board, Office of the Comptroller of the Currency, Securities and Exchange Commission, etc. |
New exclusion of Executive Order 14026 | Not applicable | Executive Order 14026 does not apply to contracts that result from a solicitation issued prior to January 30, 2022, and that are entered into on or between January 30, 2022 and March 30, 2022. |
Geographical coverage | Executive Order 13658 only applies to contracts with the Federal Government requiring performance in the 50 States and the District of Columbia. | Executive Order 14026 applies to contracts with the Federal Government requiring performance in the 50 States, the District of Columbia, and specified U.S. territories, including Guam and Puerto Rico. |