Overview
- Federal Contractor minimum wage reverts back to $13.30.
- New notice requirement
- Poster Update Log: Federal Contractor Packages
What Changed
On March 14, 2025, President Donald Trump issued Executive Order 14236, titled “Additional Rescissions of Harmful Executive Orders and Actions,” which revoked Executive Order 14026. EO 14026, signed by President Joe Biden in April 2021, had raised the minimum wage for federal contractors to $15 per hour, with annual adjustments based on inflation. By January 1, 2025, this rate had increased to $17.75 per hour.
Key Impacts of the Revocation
- Minimum Wage Reduction: With the rescission of EO 14026, the applicable minimum wage for federal contractors reverts to the rate established under Executive Order 13658, signed by President Barack Obama in 2014. As of January 1, 2025, this rate is $13.30 per hour.
- Exemptions for Recreational Services: The revocation also reinstates the exemption for certain seasonal recreational service providers on federal lands, originally established by EO 13838 during Trump's first term. Under this exemption, such contractors may now be subject only to the federal minimum wage of $7.25 per hour, unless higher state or local minimum wages apply.
Enforcement and Compliance
The U.S. Department of Labor has announced that it will no longer enforce EO 14026 or its implementing regulations. The Department is taking steps to rescind the associated regulations, including 29 CFR Part 23.
Implications for Federal Contractors
- Contractual Obligations: Federal contractors should review their contracts to determine which executive order applies. Contracts entered into, renewed, or extended after January 30, 2022, were likely subject to EO 14026 and its higher wage requirements. With the revocation, these contracts may now fall under EO 13658 or be subject to the federal minimum wage, depending on the contract terms and applicable laws.
- State and Local Laws: Contractors must also consider state and local minimum wage laws, which may impose higher wage requirements than the federal standards.
For detailed guidance, contractors are advised to consult the Department of Labor's official communications and seek legal counsel to ensure compliance with the current wage requirements.
Where can I find more information?
- All In One Poster Company is the leading provider of labor law and safety posters for all 50 states in the USA. Our website: https://www.allinoneposters.com/
- Poster Update Log: Federal Contractor Packages
- Department of Labor Website
