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
Further Reading
A proposed change to overtime eligibility by the Department of Labor is causing a fair share of angst for many employers. Companies in the ...
A new joint employer rule is on the table. The DOL’s proposed standard could determine when your organization shares liability with a...
For most employers nationwide, the new salary threshold for who’s exempt from the federal overtime and minimum wage requirements took eff...
The requirements for paying the prevailing wage under federal law have been slowly expanding for decades, but now, updated regs have brough...
The standard for determining who’s a joint employer has changed, due to a final rule from the National Labor Relations Board (NLRB). ...
The Department of Labor (DOL) has issued a new opinion letter addressing when walking time during a meal period affects compensability unde...
