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.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
White Papers
Provided by UJET
Further Reading
The IRS summarized several tax provisions of the One Big Beautiful Bill Act (OBBBA) in the 2026 version of Publication 15. Publication 1...
The U.S. Supreme Court has reached a decision in the case of a highly compensated employee who sued his employer for unpaid overtime. I...
Many paycheck-advance products, such as earned-wage access, are consumer loans, the Consumer Financial Protection Bureau (CFPB) recently st...
Before we get too far into the new year, double-check that all changes to state income tax rates and laws have been caught. Better for P...
The higher overtime salary threshold that kicks in on July 1 will affect a million-plus salaried exempt employees. And it’s good news...
Compensation is the top challenge for employers in 2025, with nearly half (44%) reporting it as their primary concern, according to a recen...
