On September 30, 2022, the Department of Labor published a notice in the Federal Register announcing that, beginning January 1, 2023, the Executive Order 13658 minimum wage rate will increase to $12.15 per hour (Minimum Wage for Federal Contracts Covered by Executive Order 13658, 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 were entered into, renewed, or extended prior to 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 13658 generally must be paid a minimum cash wage of $8.50 per hour. Contractors covered by Executive Order 13658 must ensure that workers receive no less than the minimum wage rates in effect during each calendar year in which a covered multi-year contract is performed.
Contracts in the four categories described above that are entered into on or after January 30, 2022, or that are renewed or extended (pursuant to an option or otherwise) on or after January 30, 2022, are generally subject to a higher minimum wage rate established by Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors.”[1] Questions relating to Executive Orders 13658 and 14026 may be directed to the Division of Government Contracts Enforcement at (202) 693-0064.
On September 15, 2021, the Department of Labor announced a Notice in the Federal Register to announce that, beginning January 1, 2022, the Executive Order 13658 minimum wage rate is increased to $11.25 per hour (86 FR 51683). This Executive Order minimum wage rate generally must be paid to workers performing work on or in connection with covered contracts. Additionally, beginning January 1, 2022, tipped employees performing work on or in connection with covered contracts generally must be paid a minimum cash wage of $7.90 per hour. Covered contracts that are entered into on or after January 30, 2022, or that are renewed or extended (pursuant to an option or otherwise) on or after January 30, 2022, will be generally subject to a higher $15.00 minimum wage rate established by Executive Order 14026 of April 27, 2021, Increasing the Minimum Wage for Federal Contractors. Questions relating to the Executive Order and/or these wage rates may be directed to the Government Contracts Division at (202) 693-0064.
[1] 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.”