Assuming any covered contracts still exist.
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President Trump rescinded President Biden’s executive order on March 14, 2025, but he did not rescind President Obama’s executive order.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 Davis-Bacon Act or the Service Contract Act.
- Were entered into between January 1, 2015, and January 29, 2022.
- Were not renewed or extended after January 29, 2022.
The USDOL acknowledges that “the number of contracts subject to Executive Order 13658 has significantly decreased over the past several years,” but “anticipates that there will still be some existing contracts . . . that would not have” been covered by Executive Order 14026 and that therefore remain covered by Executive Order 13658.
For assistance complying with Executive Order 13658, please contact a member of Constangy’s EEO/Contractor Compliance, Reporting & Analytics Practice Group.
PartnerCara co-chairs Constangy’s practice groups relating to EEO/Contractor Compliance, Reporting & Analytics, and DEI Compliance. She advises employers on proactive strategies to help avoid litigation and has defended employers ...
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