US Department of Labor announces annual update to current minimum hourly wage rate for federal contract workers

WASHINGTON – The U.S. Department of Labor today issued a Federal Register notice announcing an annual update to the current Executive Order 13658 minimum wage for workers performing work on or in connection with covered contracts.

In 2014, President Obama signed Executive Order 13658, “Establishing a Minimum Wage for Federal Contractors,” which established a minimum wage rate for certain federal contractors that is adjusted annually based on inflation. As announced in today’s Federal Register notice, the Executive Order 13658 minimum wage rate will increase from $10.95 to $11.25 per hour effective Jan.1, 2022. The new rate must generally be paid to workers performing work on or in connection with covered contracts.

The Federal Register notice also states that, beginning Jan. 1, 2022, employers must pay tipped employees performing work on or in connection with covered contracts a minimum cash wage of $7.90 per hour.

Covered contracts that are entered into on or after Jan. 30, 2022 – or that are renewed or extended (pursuant to an option or otherwise) on or after Jan. 30, 2022 – will be generally subject to a higher minimum wage rate of $15 per hour established by Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” signed by President Biden on April 27, 2021.