Compliance Stuff

 The Federal Contractor Minimum Wage poster has been updated. The Federal Contractor Minimum Wage poster has been updated to reflect an increase to the minimum wage for certain federal contractors. Effective May 11, 2026, federal contractors with contracts that were entered into on or between January 1, 2015, and January 29, 2022, that were not renewed or extended on or after January 30, 2022, must pay employees $13.65 per hour. This is a mandatory change. Statutory language regarding this posting: Executive Order 13658, established a minimum wage for federal contractors. Effective May 11, 2026 through December 31, 2026, the minimum wage increase to $13.65 per hour, applies to certain federal construction and service contracts that were entered into on or between January 1, 2015, and January 29, 2022, that have not been renewed or extended on or after January 30, 2022. Covered tipped employees performing on or in connection with covered contracts must be paid a cash wage of at leas...

Updated 09.02.25 to include 2024 Minimum Salary Rule development that occurred since original publication date. Uncertainty persists as employers navigate federal wage and hour compliance in the second Trump Administration. Several final rules issued by the Department of Labor (DOL) during the Biden Administration have been mired in ongoing litigation. The DOL has signaled a retreat from the defense of these lawsuits and has begun to roll back other regulations. As the federal government eases its regulatory grip, employers must continue to comply with more stringent or otherwise different standards that apply under state and local wage and hour laws. 2024 Minimum Salary Rule: Defunct, Perhaps Replaced The DOL issued a final rule on April 26, 2024, to increase the minimum salary threshold for application of the Fair Labor Standards Act’s (FLSA’s) “white collar” exemptions. The first of what was to be a two-stage increase took effect on July 1, 2024, adopting a sharp, two-stage increase...

  President Trump just rescinded an executive order that mandated a higher minimum wage for workers on federal contracts. The Biden-era order initially set the wage to $15 an hour in 2022, and it was ultimately raised to $17.75 earlier this year. Trump’s move was part of a March 14 order rescinding 18 actions from the prior administration – in addition to the 78 nixed on his first day in office. What does this mean for federal contractors and what should you do now? Although Biden’s minimum wage order is no longer in effect, federal contractors still have wage obligations under federal, state, and local laws. Here’s an overview of how we got here and what you should consider doing now. Key Points for Federal Contractors Biden’s Order Raised Contractor Wage:  Under President Biden’s Executive Order 14026, the applicable minimum wage rate for workers performing work on or in connection with certain covered federal contracts was raised to $15 in 2022. The order provided a boost ...

Federal contractors may need to be prepared to increase pay for employees working on, or in connection with, covered federal government contracts. The hourly minimum wage for employees performing work on federal contracts will rise from $17.20 to $17.75 on Jan. 1, 2025, the Department of Labor (DOL) has  announced . The new minimum wage rate will apply in full to tipped and non-tipped employees alike, as well as to workers with disabilities. Contracts entered into, renewed, or extended prior to Jan. 30, 2022, generally remain subject to the minimum wage rate under Executive Order 13658. The operative minimum wage for those contracts will increase from $12.90 to $13.30 per hour. There are a number of pending lawsuits challenging the Biden Administration’s authority to impose the minimum wage increase for federal contractors. It is unlikely these cases will be resolved prior to Jan. 1. Employers should not count on a reprieve before the mandated wage hike takes effect. 500,000 Emplo...

 he Wage and Hour Division (WHD) of the U.S. Department of Labor (the Department) is issuing this notice to announce the applicable minimum wage rate for workers performing work on or in connection with Federal contracts covered by Executive Order 14026 , Increasing the Minimum Wage for Federal Contractors (the Executive Order or the order). Beginning on January 1, 2025, the Executive Order 14026 minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $17.75 per hour . This minimum wage rate will apply to non-tipped and tipped employees alike. Contracts similar to those covered by Executive Order 14026 that were entered into, renewed, or extended prior to January 30, 2022, are generally subject to a lower minimum wage rate established by Executive Order 13658 of February 12, 2014, Establishing a Minimum Wage for Contractors. Source(s): Department of Labor (Wage and Hour Division) , received on Septembe...

 The Wage and Hour Division (WHD) of the U.S. Department of Labor (the Department) is issuing this notice to announce the applicable minimum wage rate for workers performing work on or in connection with Federal contracts covered by Executive Order 13658 , Establishing a Minimum Wage for Contractors (the Executive Order or the order), beginning January 1, 2025. Beginning on that date, the Executive Order 13658 minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $13.30 per hour , while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $9.30 per hour. Covered contracts that are entered into on or after January 30, 2022, or that are renewed or extended (pursuant to an option or otherwise) on or after January 30, 2022, are generally subject to a higher ...

 A federal court in Colorado refuses to join the US Department of Labor implementing EO 14026. The Tenth Circuit Court finds that the EO had a sufficient connection to promoting economy and efficiency in the federal government contracting, thus making it permissible under the Procurement Act .   The Tenth Circuit has jurisdiction over federal courts in Colorado, Kansas, New Mexico, Oklahoma, Utah and Wyoming. Source(s): JacksonLewis , received on May 17, 2024; Office of Federal Procurement Policy , accessed on May 17, 2024.