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The Department of Labor (DOL) has announced that a $13.65 hourly minimum wage will apply to workers on certain federal government contracts effective May 11, 2026. This is an increase over the current $13.30 per hour rate. For tipped workers on covered federal contracts, the applicable minimum cash wage will increase to $9.55 per hour from the current hourly rate of $9.30.
The new minimum wage will apply to federal contracts entered into between Jan. 1, 2015, and Jan. 29, 2022, that were not renewed or extended on or after Jan. 30, 2022. The new rate does not apply to federal contracts entered into after Jan. 30, 2022.
The DOL notice states that the $13.65 hourly rate applies to employees working on federal contracts that are covered by Executive Order (EO) 13658. EO 13658, issued by President Barack Obama in 2014, was the first to establish a minimum wage requirement for employees on federal contracts that is higher than the standard federal minimum wage. The EO set a $10.10 minimum wage rate for federal contractors, with annual rate adjustments to be determined by the secretary of labor.
EO...
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