On April 27, 2021, President Biden signed Executive Order (E.O.) 14026, which raised the minimum wage paid by government contractors to workers performing work “on or in connection with” covered federal contracts. As of January 1, 2023, workers covered by E.O. 14026 must be paid a minimum wage of $16.20 per hour to be compliant with the executive order.

If you are a government contractor, you may be asking yourself:

1. Does E.O. 14026 apply to all federal contracts?

The minimum wage law applies to the following federal contracts:

• Procurement contracts for construction covered by the Davis-Bacon Act (DBA);
• Service contracts covered by the Services Contract Act (SCA);
• Concessions contracts, including any concessions contract excluded from the SCA by the Department’s regulations at 29 CFR 4.133(b); and
• Contracts in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.

The $16.20 federal minimum wage also only applies to new contracts or contracts being renewed after January 30, 2022. Otherwise, the contract is governed by E.O. 13658, which requires a minimum wage of $12.15 per hour for 2023.

• For contracts that were entered into prior to January 30, 2022, the $16.20 minimum wage requirement applies prospectively as of the date that such contract is renewed or extended (pursuant to an exercised option or otherwise) on or after January 30, 2022, and not the date that the contract was...

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