New Minimum Wage For Federal Contract Workers

Timekeeping News

December 7, 2022
Man pointing up with a sign that says salary

The U.S. Department of Labor announced a new minimum wage increase for workers working on federal contracts that are subject to Executive Order 14026.

The general per-hour wage will be increased to $16.20 for such workers effective from January 1, 2023.

Beginning January 1, 2023,  federal contractors are required to pay workers either the minimum wage as per Executive Order 14026 or pay the minimum wage ascertained for their specific occupation enforced by the Wage and Hour Division of the U.S. Department of Labor.

The U.S. Department of Labor also announced that contracts that were created, renewed, or continued before January 30, 2022, are not subject to the new wage law.  Such contracts will be subjected to the minimum wage law as per Executive Order 13658 which was published in 2014… Executive Order 13658 declared the minimum wage to be $15 for workers subject to the regulation.

Both Executive Order 13658 and 14026 are applicable on:

  • Service contracts covered by the SCA
  • Procurement contracts for construction covered by the DBA
  • Concession and Service contracts according to the Service Contract Act
  • Contracts related to federal property, federal employees, or the general public

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