Federal Contract Workers Set to Receive $13.65 Minimum Wage

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The Department of Labor (DOL) has announced that a $13.65 hourly minimum wage will apply to workers on certain federal government contracts effective May 11, 2026. This is an increase over the current $13.30 per hour rate. The new minimum wage will apply to federal contracts entered into between Jan. 1, 2015, and Jan. 29, 2022, that were not renewed or extended on or after Jan. 30, 2022. The new rate does not apply to federal contracts entered into after Jan. 30, 2022.

Why it matters

The applicable minimum wage for employees working on or in connection to federal contracts has been on unsteady terrain for several years, presenting a considerable compliance and business challenge for federal contractors. The DOL's announcement provides clarity for some existing contracts, but uncertainty remains for newer federal contracts.

The details

The $13.65 hourly rate applies to employees working on federal contracts that are covered by Executive Order (EO) 13658, issued by President Barack Obama in 2014. EO 13658 set a $10.10 minimum wage rate for federal contractors, with annual rate adjustments. EO 13658 was in effect between Jan. 1, 2015, and Jan. 29, 2022, at which point it was superseded (but not revoked) by EO 14026, issued by President Joe Biden in 2021. The Biden EO increased the applicable wage floor to $15 per hour, effective Jan. 30, 2022, for contracts then in effect, or renewed or extended after that date. On Mar. 14, 2025, President Donald Trump issued EO 14236, rescinding the Biden EO, but the Obama EO remains in effect for contracts entered into, renewed, or extended prior to Jan. 30, 2022.

• The $13.65 hourly minimum wage will take effect on May 11, 2026.
• EO 13658, issued by President Obama, was in effect between Jan. 1, 2015, and Jan. 29, 2022.
• EO 14026, issued by President Biden, increased the applicable wage floor to $15 per hour, effective Jan. 30, 2022.
• EO 14236, issued by President Trump, rescinded the Biden EO on Mar. 14, 2025.

What’s next

The DOL has not provided guidance on what rate is in effect for federal contracts entered into after Jan. 30, 2022. It remains unclear whether any federal wage floor beyond the standard minimum wage of $7.25 applies to such contracts.