EMPLOYMENT LAW NEWS
Federal Contractor Minimum Wage Increase Effective January 6, 2027
By Dana Holle, GovDocs Counsel and Manager
Employment Law and Compliance
Published October 18, 2026
Effective January 6, 2027, the DOL will raise the minimum wage to $14.05 per hour ($9.85 for tipped employees) for certain federal contracts under Executive Order 13658.
DOL Announces New Federal Contractor Minimum Wage Rates under Executive Order 13658
On Oct. 8, 2026, the U.S. Department of Labor published notice that the minimum wage for workers performing on federal contracts covered by Executive Order 13658 will increase to $14.05 per hour, with a $9.85 per hour wage for tipped employees, effective Jan. 6, 2027.
Importantly, the U.S. Department of Labor expressly states in the notice that the new rates apply only to certain types of federal contracts entered into between Jan. 1, 2015, and Jan. 29, 2022. Since President Trump revoked Executive Order 14026 in March 2025, the U.S. Department of Labor has not released an updated federal contractor minimum wage for contracts entered into, renewed, or extended on or after Jan. 30, 2022. The U.S. Department of Labor issued the following notice on Executive Order 14026:
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.
In the meantime, federal contractors should continue to closely monitor agency guidance and enforcement developments, and review their pay practices to ensure compliance with applicable contractual obligations.
For additional background on the status of the federal contractor minimum wage, check out the Compliance Conundrum: Staying Up to Date on Federal Contractor Minimum Wage blog addressing the federal contractor minimum wage developments in 2025.
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Federal Contractor Posting Requirements
Federal contractors are also subject to specific posting requirements, including mandatory minimum wage postings. At this time, the U.S. Department of Labor has not yet released an updated federal contractor minimum wage poster reflecting the Jan. 6, 2027, increase.
GovDocs will continue to monitor for updates to its Federal Contractor Update Program.
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
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