EMPLOYMENT LAW NEWS
Compliance Conundrum: Staying Up to Date on Federal Contractor Minimum Wage
By Jana Bjorklund, GovDocs Senior Counsel and Director
Employment Law and Compliance
Published April 8, 2025
On March 14, 2025, Trump issued another Executive Order which included a recession of Biden’s EO 14026 — potentially shifting the minimum wage for federal contractors from $17.75 to $13.30. Our latest blog breaks down the history and current state of the federal contractor minimum wage.
On March 14, 2025, Trump issued another Executive Order which included a rescission of Biden’s Executive Order 14026 (EO 14026) increasing the federal contractor minimum wage. Under EO 14026, the minimum wage rate in effect for federal contractors in 2025 was $17.75.
Background on Federal Contactor Minimum Wage
President Obama established the first federal contractor minimum wage under his Executive Order 13658 (EO 13658) in 2014. EO 13658 set the federal contractor minimum wage at $10.10 with annual increases based on inflation. EO 14026 was implemented in 2021 and raised the federal contractor minimum wage to $15.00, phasing out the tipped employee wage and including annual increases based on inflation. The Department of Labor (DOL) subsequently issued regulations implementing the new minimum wage rate for federal contractors under EO 14026.
The higher wage under EO 14026 applied to contracts renewed, extended, or modified after January 30, 2022. Contracts entered into prior to that date were still subject to the $13.30 minimum wage under EO 13658 in 2021.
The Current State of Federal Contractor Minimum Wage
The DOL rule implementing EO 14026 remains in place. And although Trump’s Executive Order rescinded Biden’s EO 14026, it did not rescind Obama’s EO 13658 which is still in effect.
It would appear then that the federal contractor minimum wage reverts to the $13.30 rate established under EO 13658. However, federal contractors should keep an eye out for further guidance from the DOL and consult legal counsel to ensure compliance with both applicable federal and state law in this area.
Conclusion
The evolving landscape of the federal contractor minimum wage is complex. Staying compliant requires careful attention to the latest developments.
To simplify your compliance efforts, GovDocs Minimum Wage offers a solution that tracks minimum wage rates and pay transparency requirements across jurisdictions. And for managing federal contractor labor law posters, the GovDocs Federal Contractor Update Program ensures you’re up to date with the latest posting requirements.
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