Minimum Wage for Federal Contractors Increasing Soon
The Department of Labor (DOL) recently issued a Federal Register notice, increasing the minimum wage for certain federal contractors.
Here are the details contained in the February 9, 2026, notice.
First, it’s important to clarify that the rate change applies to federal contracts covered by Executive Order (EO) 13658 – i.e., those entered into between January 1, 2015, and January 29, 2022, and not renewed or extended on or after January 30, 2022.
For covered contracts, here’s what’s changing on May 11, 2026:
- Minimum wage will increase to $13.65 per hour (up from $13.30), and
- Required minimum cash wage paid to tipped employees will increase to $9.55 per hour (up from $9.30).
Ending Point
Next, the DOL notice explained that on March 14, 2025, EO 14236 revoked EO 14026.
The latter had increased the minimum pay rate for contracts entered into on or after January 30, 2022.
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
If a poll of attendees of a recent IOFM webinar is any indication, it’s going to be a very busy Form 1099 reporting season in 2024 fo...
A North Texas company made a very expensive mistake. It misclassified workers as contractors and didn’t pay them for overtime put in....
The Department of Labor (DOL) has been planning for over a year to revise its overtime exemption regs, with May as its latest deadline. So ...
After more than a year, the IRS has made changes to Form 1099-MISC, Miscellaneous Information, and Form 1099-NEC, Nonemployee Compensation....
Because of the American Rescue Plan of 2021, more companies and gig workers will be receiving Form 1099-K, Payment Card and Third Party Net...
Looks like AI won’t be taking the place of all those vacant jobs after all. CEOs at bigger companies — some who laid off a lot ...