Pexels Free to use - see Description.

Changes to the Federal Contractor Minimum Wage

The Department of Labor (DOL) reported on March 14, 2025 that President Trump issued Executive Order (EO)  14236, “Additional Rescissions of Harmful Executive Orders and Actions,” (90 FR 13037) which revoked 2021’s Executive Order 14026 .  The Department of Labor is no longer enforcing Executive Order 14026 or the implementing rule (29 CFR part 23). 

EO 14236 did not rescind the Obama-era Executive Order 13658 (2014) which had a lower minimum wage and narrower scope so it stands as the most recent effective executive order setting a federal contractor minimum wage.  The rate set in EO 13658  is $13.30 per hour ($9.30 for tipped workers).

The concept of a federal contractor minimum wage was first introduced by President Obama in 2014 under EO 13658. This order set an initial minimum wage of $10.10 per hour for covered contracts, with annual adjustments based on the Consumer Price Index (CPI).  

Federal contractors and subcontractors must continue to follow their current contract requirements as well as other federally mandated compensation requirements, including minimum wage rates and applicable SCLS and Davis-Bacon Act wage determinations.  Many states and local jurisdictions impose higher minimum wages than the federal standard as well.  In addition, the Davis-Bacon Act and the McNamara-O’Hara Service Contract Act (SCLS) continue to require prevailing wages by certain federal contractors and subcontractors that perform services or construction work.

Contractors may want to engage with contracting officers to understand any agency-specific guidance or expectations regarding wage requirements under existing and future contracts.