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Wednesday, March 11, 2026

Increase to federal contractor minimum wage is announced, effective in May - JD Supra

The U.S. Department of Labor has announced that federal contractors subject to Executive Order 13658, Establishing a Minimum Wage for Contractors, must increase their minimum wage rates by May 11.

Currently, the minimum wage for contractors covered by the Executive Order is $13.30. The rate for tipped employees is currently $9.30.

On May 11, the minimum wage rates will increase to $13.65 for non-tipped employees and $9.55 for tipped employees.

The U.S. Department of Labor is tasked with regularly updating the minimum wage set by Executive Order 13658, using a methodology generally based on inflation.

Three presidents, three executive orders

President Obama and President Biden issued executive orders establishing minimum wages for certain types of federal contracts:

  • President Obama issued Executive Order 13658, which applies to certain contracts entered into between January 1, 2015, and January 29, 2022, and that were not renewed or extended after January 29, 2022.
  • President Biden issued Executive Order 14026, Increasing the Minimum Wage for Federal Contractors, which applied to certain contracts entered on or after January 30, 2022.

President Trump rescinded President Biden’s executive order on March 14, 2025, but he did not rescind President Obama’s executive order.

Thus, Executive Order 13658 remains in effect and requires covered contractors to comply with the minimum wage requirements. Generally, Executive Order 13658 applies to contracts that

  • Are subject to the...


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