On November 22, 2021, the Department announced publication of the final rule, “Increasing the Minimum Wage for Federal Contractors.” The Department has finalized regulations to implement Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” which was signed by President Joseph R. Biden Jr. on April 27, 2021. Executive Order 14026 states that the Federal Government’s procurement interests in economy and efficiency are promoted when the Federal Government contracts with sources that adequately compensate their workers. The Executive Order raises the minimum wage paid by those contractors to workers performing work on or in connection with covered federal contracts to $15.00 per hour, beginning January 30, 2022; and beginning January 1, 2023, and annually thereafter, an amount determined by the Secretary of Labor (Secretary). This final rule establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 14026, and is effective on January 30, 2022.
On September 30, 2022, the Department of Labor published a notice in the Federal Register announcing that, beginning January 1, 2023, the Executive Order 14026 minimum wage rate will increase to $16.20 per hour (Minimum Wage for Federal Contracts Covered by Executive Order 14026, Notice of Rate Change in Effect as of January 1, 2023). This Executive Order minimum wage generally applies to workers performing work on or in connection with federal contracts that are entered into, renewed, or extended (pursuant to an option or otherwise) on or after January 30, 2022, in the following four categories:
- Procurement contracts for construction covered by the DBA;
- Service contracts covered by the 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.
Additionally, beginning January 1, 2023, tipped employees performing work on or in connection with contracts covered by Executive Order 14026 generally must be paid a minimum cash wage of $13.75 per hour. Contractors covered by Executive Order 14026 must ensure that workers receive no less than the minimum wage rates in effect during each calendar year in which a covered contract is performed.
Contracts in the four categories described above that were entered into, extended, or renewed prior to January 30, 2022, are generally subject to a lower minimum wage rate established by Executive Order 13658, “Establishing a Minimum Wage for Contractors.” Questions relating to Executive Orders 13658 and 14026 may be directed to the Wage and Hour’s Division of Government Contracts Enforcement at (202) 693-0064.
 Based on an order issued by the U.S. Court of Appeals for the Tenth Circuit on February 17, 2022, the minimum wage requirements of the final rule implementing Executive Order 14026 are not currently being enforced as to “contracts or contract-like instruments entered into with the federal government in connection with seasonal recreational services or seasonal recreational equipment rental for the general public on federal lands.”
- Final Rule: Increasing the Minimum Wage for Federal Contractors
- Secretary Walsh remarks on the Minimum Wage Executive Order Final Rule
- Proposed Rule: Increasing the Minimum Wage for Federal Contractors
- Frequently Asked Questions
- Side-by-Side Comparison of EO 13658 and EO 14026
- Social Media Toolkit (Spanish)
- 5 Numbers: Minimum Wage Final Rule (YouTube)
- Executive Order 14026: Increasing the Minimum Wage For Federal Contractors (YouTube)