Federal Contractor Requirements

Executive Orders 13658 and 14026 also establish minimum wage rates that must be paid to workers performing on or in connection with certain federal contracts.  Executive Order 14026 applies to certain construction and service contracts, including contracts subject to the Davis-Bacon Act or the Service Contract Act, that were entered into, renewed, or extended on or after January 30, 2022.  The minimum wage rate that generally must be paid to workers performing work on or in connection with contracts covered by Executive Order 14026 is $16.20 per hour for calendar year 2023, while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is $13.75 per hour. 

Contracts awarded on or between January 1, 2015 and January 29, 2022 are subject to Executive Order 13658 “Establishing a Minimum Wage for Contractors” which requires a lower minimum wage requirement than contracts entered into on or after January 30, 2022 or contracts that were renewed or extended on or after January 30, 2022 are subject to Executive Order 104026 “Increasing the Minimum Wage for Federal Contractors”, which requires a higher minimum wage rate. The minimum wage rate that generally must be paid to workers performing work on or in connection with contracts covered by Executive Order 13658 is $12.15 per hour for calendar year 2023, while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is $8.50 per hour.