NOTICE: On March 14, 2025, President Trump issued Executive Order 14236, “Additional Rescissions of Harmful Executive Orders and Actions,” (90 FR 13037), which revoked, among other items, Executive Order 14026 of April 27, 2021, “Increasing the Minimum Wage for Federal Contractors” (86 FR 22835). Pursuant to section 2(d) of Executive Order 14236, the Department of Labor is no longer enforcing Executive Order 14026 or the implementing rule (29 CFR part 23) and will take steps, including rescinding 29 CFR part 23, to implement and effectuate the revocation of Executive Order 14026.
On September 30, 2024, the Department of Labor published a notice in the Federal Register announcing that, beginning January 1, 2025, the Executive Order 13658 minimum wage rate will increase to $13.30 per hour (Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect as of January 1, 2025). This Executive Order minimum wage generally applies to workers performing work on or in connection with federal contracts that were entered into, renewed, or extended prior to January 30, 2022, in the following four categories:
Procurement contracts for construction covered by the DBA;
Service contracts covered by the SCA;
Concessions contracts, including any concessions contract excluded from the SCA by the Department’s regulations at 29 CFR 4.133(b); and
Contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public.
Additionally, beginning January 1, 2025, tipped employees performing work on or in connection with contracts covered by Executive Order 13658 generally must be paid a minimum cash wage of $9.30 per hour. Contractors covered by Executive Order 13658 must ensure that workers receive no less than the minimum wage rates in effect during each calendar year in which a covered multi-year contract is performed.
On September 28, 2023, the Department of Labor announced a Notice in the Federal Register to announce that, beginning January 1, 2024, the Executive Order 13658 minimum wage rate is increased to $12.90 per hour (86 FR 51683). This Executive Order minimum wage rate generally must be paid to workers performing work on or in connection with covered contracts. Additionally, beginning January 1, 2024, tipped employees performing work on or in connection with covered contracts generally must be paid a minimum cash wage of $9.05 per hour. Questions relating to the Executive Order and/or these wage rates may be directed to the Division of Government Contracts Enforcement at (202) 693-0064.