DOL Sets New Minimum Wage for Federal Contractors - CBIA
The following article first appeared in the News & Analysis section of Littler Mendelson’s website. It is reposted here with permission.
In 2014 President Obama issued Executive Order 13658, creating a minimum wage for work performed on or in connection with certain federal contracts that is higher than the minimum wage applicable to employers subject to just the Fair Labor Standards Act.
In 2021 President Biden issued Executive Order 14026, establishing an even higher minimum wage applicable to certain government contracts entered into on or after Jan. 30, 2022 and providing that EO 13658 “is superseded, as of Jan. 30, 2022, to the extent it is inconsistent with this order.”
On March 14, 2025, President Trump issued Executive Order 14236, revoking President Biden’s EO 14026 without addressing the continuing viability of President Obama’s EO 13658.
Following this executive action, there has been uncertainty as to whether the minimum wage previously established pursuant to EO 13658 would once again apply or whether the higher federal minimum wage applicable to federal contracts has been abolished entirely.
Since neither Biden’s EO 14026 nor Trump’s EO 14236 revoked EO 13658, there is an argument that EO 13658 applies to covered government contracts entered into on or after March 14, 2025.
Employers have been waiting for the U.S. Department of Labor to offer guidance on this issue, which has now been provided, albeit obliquely, in a notice published in the Federal...
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