On March 14, 2025, President Trump issued an executive order ending the obligation to pay individuals working on or in connection with certain federal contracts or subcontracts a minimum wage currently set at $17.75 per hour. In particular, Trump has rescinded 18 Biden executive orders, including Biden’s Executive Order 14026 that had increased the federal contractor minimum wage.
A federal contractor minimum wage was first established by President Obama through his Executive Order 13658 of February 12, 2014 (Establishing a Minimum Wage for Contractors) (the “Obama E.O.”). The Obama E.O. applied to government contracts and subcontracts involving construction, services, or concessions or connected with federal property or lands and related to offering services for federal employees, their dependents, or the general public. Individuals working on or in connection with one of these types of covered contracts were entitled to a minimum wage originally set at $10.10 per hour ($4.90 per hour for tipped employees). The minimum wage was subject to annual increases tied to the Consumer Price Index. As of January 1, 2025, the minimum wage under the Obama E.O. was $13.30 per hour ($9.30 per hour for tipped employees).1
President Biden issued Executive Order 14026 on April 27, 2021 (the “Biden E.O.”). In general, the Biden E.O. applied to the same types of contracts and workers as did the Obama E.O., but further increased the minimum wage and began a process of phasing out the lower...
In This Article: WBA +0.78% Walgreens agreed to pay the United States $300M, plus interest at a rate of 4.00% per annum accruing from October 20, 2024, of which $150M shall constitute restitutio...