Minimum Wage Hike: Some Federal Contractors Now Subject to $13.65 Per Hour Pay
The minimum wage for certain federal contractors increased to $13.65 per hour on May 11, 2026. The tipped cash wage rose to $9.55. Here are the details.
First, it’s important to clarify that the rate change applies to federal contracts covered by Executive Order 13658 – those entered into between Jan. 1, 2015, and Jan. 29, 2022, and not renewed or extended on or after Jan. 30, 2022.
For covered contracts, here’s what changed on May 11, 2026:
- Minimum hourly wage increased to $13.65 per hour (up from $13.30), and
- Required minimum cash wage paid to tipped employees increased to $9.55 per hour (up from $9.30).
Single EO Regarding Federal Contractor Minimum Wage
On March 14, 2025, President Trump issued EO 14236, revoking EO 14026 – the higher-rate federal contractor minimum wage that had applied to contracts entered into on or after Jan. 30, 2022.
The DOL is no longer enforcing EO 14026 or its implementing rule (29 CFR Part 23). EO 13658 is now the only federal contractor wage executive order in effect.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
The IRS has released proposed regulations, giving businesses needed details about tracking and reporting income based on tips. The One B...
The Department of Labor (DOL) has finalized a technical amendment restoring the 2019 overtime salary threshold to the Code of Federal Regul...
Does dual-role scheduling put your overtime compliance at risk? A new DOL opinion letter says it depends on the specific facts of the arran...
Be sure your company gets the latest version of Form I-9. The new edition went into circulation on August 1, 2023, with its use required sh...
Last year, actor Tom Hollander — famed for his role as Cutler Beckett in the Pirates of the Caribbean franchise, in addition to other fil...
To prevent tax levies, employees may enter into voluntary agreements with IRS to repay what’s owed. That means Payroll may end up withhol...
