The Labor Department has announced that the federal contractor minimum wage rate will increase to $13.65 per hour on May 11, with the tipped employee cash wage rising to $9.55, for contracts covered by Executive Order 13658.
This update applies only to contracts awarded between January 1, 2015, and January 29, 2022, that were not renewed or extended on or after January 30, 2022. DOL confirmed that E.O. 13658 remains in effect for this limited set of contracts after the rescission of E.O. 14026.
Most contracts covered by the Davis-Bacon Act or Service Contract Act will already meet or exceed the new $13.65 rate because prevailing wage requirements remain higher. The updated rate therefore matters most for non-DBA/SCA contracts still subject to E.O. 13658, such as contracts involving federal property or lands that provide specified services.
Contractors with legacy agreements predating 2022 must determine whether E.O. 13658 still applies and, if so, must ensure that wage rates for covered workers meet the $13.65 requirement by May 11.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can direct any questions to hello@cwc.org. CWC members can read more here.