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
Webinars
Provided by SkyStem
White Papers
Provided by Anaplan
Further Reading
Many paycheck-advance products, such as earned-wage access, are consumer loans, the Consumer Financial Protection Bureau (CFPB) recently st...
To prevent tax levies, employees may enter into voluntary agreements with IRS to repay what’s owed. That means Payroll may end up withhol...
If someone qualifies as exempt from the overtime requirements of the Fair Labor Standards Act (FLSA), is an exempt classification mandatory...
It’s time for updates: Higher federal per diem rates for business travel have been released by the General Services Administration (G...
As finance and HR leaders develop 2026 salary budgets, errors in payroll execution can quickly undermine the impact of planned pay raises. ...
A federal court found a worker had been misclassified and identified more than 800 hours of potential overtime. But the Fifth Circuit still...
