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Federal contractor minimum wage

The federal contractor minimum wage rose for eight years. Then it was rescinded.

Summary

Executive Order 14026 raised the minimum wage on federal contracts every year from 2022 to 2025, reaching $17.75 an hour and, by the Department of Labor's own estimate, 327,000 workers. President Trump rescinded it in March 2025. The wage floor still in force today tops out at $13.65 an hour and covers only a shrinking pool of contracts signed before 2022.

By Nero · July 10, 2026

The federal government does not employ most of the people who clean its buildings, staff its call centers, or guard its warehouses. It contracts for that labor, and for a decade the floor under that labor's pay has been set not by Congress but by executive order — two of them, in sequence, now pointed in opposite directions.

Executive Order 13658, signed by President Obama in 2014, set a $10.10-an-hour floor for federal contract workers starting in 2015, rising with inflation to $11.25 by January 2022. Executive Order 14026, signed by President Biden in April 2021, superseded it for contracts signed or renewed from January 30, 2022 onward, opening at $15.00 and climbing each year the Wage and Hour Division published a new rate — reaching $17.75 an hour for 2025. On March 14, 2025, Executive Order 14236 revoked it. The Wage and Hour Division's own notice on the rule now says the agency is "no longer enforcing" EO 14026 or its implementing regulation and is moving to rescind it formally.

Wage floor, 2025 → 2026
$17.75 → $13.65
a 23% drop in the rate WHD enforces
Workers projected to get a raise
327,000
DOL's own 2021 estimate; EPI put it at 390,000
Avg. annual raise per worker
$3,100
Economic Policy Institute estimate, April 2021

Eight years up, one order down

The rate itself traces a clean line: up every year from 2015 through 2025, under two different orders, then a cliff. What's in force today isn't a new, lower number set by anyone — it's the old EO 13658 rate, reinstated by default because the order that superseded it is gone.

The federal contractor minimum wage, 2015-2026
Dollars per hour, by executive order and year
2015 (EO 13658 launch)
$10.1
2022, pre-Jan. 30 (EO 13658 peak)
$11.25
2022, post-Jan. 30 (EO 14026 launch)
$15
2023 (EO 14026)
$16.2
2024 (EO 14026)
$17.2
2025 (EO 14026, final rate)
$17.75
2026 (EO 13658, post-rescission)
$13.65
Source: U.S. Dept. of Labor, Wage and Hour Division, Federal Register notices; FAR 22.1002-5
View data as table
Federal contractor minimum wage rate by year
2015$10.10/hrEO 13658 launch rate
2022, pre-Jan. 30$11.25/hrEO 13658's last rate
2022, post-Jan. 30$15.00/hrEO 14026 launch rate
2023$16.20/hrEO 14026
2024$17.20/hrEO 14026
2025$17.75/hrEO 14026's final rate before rescission
2026$13.65/hrEO 13658, reinstated; EO 14026 unenforced

$13.65 an hour is the number WHD still administers, but its reach is narrow by design. The Wage and Hour Division's 2026 rate notice says it applies only to contracts "entered into between January 1, 2015, and January 29, 2022, that were not renewed or extended...on or after January 30, 2022" — a cohort that, four years on, is not renewing. Federal contracts turn over; the ones still eligible for the old rate are the ones nobody has touched since early 2022. Employment lawyers tracking the rescission (e.g., Holland & Knight) note that most current federal contracts began after that date, which means most contract workers are covered by neither order today — only by whatever statutory wage determination or general labor-law floor applies to their specific contract.

What the raise was projected to be worth

Two organizations sized EO 14026's effect using different methods, before either could have known it would later be undone. The Department of Labor published its estimate inside the rule itself; the Economic Policy Institute published its own the day the order was signed.

Two independent estimates of EO 14026's annual wage transfer
Projected additional wages paid to federal contract workers per year, 2021 dollars
Dept. of Labor's own estimate
$1.7B
Economic Policy Institute's estimate
$1.2B
Source: U.S. DOL, Wage and Hour Division Final Rule (Federal Register 2021-25317); Economic Policy Institute, April 27, 2021
View data as table
DOL vs. EPI wage-transfer estimates
Dept. of Labor (2021 Final Rule)$1.7B/yr327,000 workers
Economic Policy Institute (2021)$1.2B/yr390,000 workers; $3,100 avg./worker

's own regulatory impact analysis put the number of workers who'd see a raise at 327,000, worth $1.7 billion a year in wages. The Economic Policy Institute, using a separate simulation built on federal contract-spending data, estimated up to 390,000 workers — with an "extreme lower bound" of 226,000 once construction workers already covered by Davis-Bacon rates are excluded — at an average of $3,100 more per year for each affected year-round worker. The two estimates disagree on both worker count and total dollars because they use different models, not because either contradicts the other; cites the EPI figure in its own rule as a point of comparison. Both describe the same policy: a wage floor that, as of March 2025, no longer applies to the contracts it was built for.

An order still on the books, not enforced

The legal footing under EO 14026 was never settled. In Nebraska v. Su, decided November 5, 2024, a divided Ninth Circuit panel held that the order exceeded the president's procurement authority and sent the case back for an injunction — a ruling that split from the Fifth Circuit, which had upheld the mandate months earlier. The Supreme Court declined to resolve the split in January 2025. Then the question changed: rather than litigate whether Biden could set the wage, Trump's March 2025 order simply withdrew it, and stopped enforcing it while it works through the rulemaking needed to strike the regulation from the books. Litigants in the Ninth Circuit case have told the court that, technically, the rule still carries the force of law until that rulemaking is final — a dispute over paperwork now, not over the number itself.

The takeaway

  • The rate didn't get renegotiated down — it reverted. No agency set $13.65 as the "right" number for 2026; it's what the older, narrower order already had on the books once the newer one stopped being enforced.
  • Coverage shrank faster than the rate did. EO 13658's $13.65 floor applies only to a fixed, aging pool of pre-2022 contracts. Most current federal contract work now has no EO-specific wage floor at all.
  • Two independent estimates, one direction. 's own rule and EPI's outside analysis disagree on the exact worker count and dollar total, but both describe several hundred thousand workers and well over a billion dollars a year in wages that the rescission stopped being paid.

The wage-rate figures come from Wage and Hour Division Federal Register notices and the FAR, all primary regulatory sources for what rate applied in a given year. The worker-count and total-dollar estimates come from two separate 2021 analyses ('s own rule and EPI's independent estimate) of EO 14026's projected impact — neither is a measured count of workers who actually received the rate at any point, and both predate the 2025 rescission.

Sources

  • U.S. Dept. of Labor, Wage and Hour Division, Federal Register notices announcing the annual EO 14026 and EO 13658 minimum wage rates — primary source for every year's dollar figure: 2023 rate (2022-20906), 2024 rate (2023-21115), 2025 rate (2024-22100), 2026 rate (2026-02466).
  • General Services Administration / FAR Council, FAR 22.1002-5, Executive Orders 13658 and 14026 — source for the 2015 ($10.10) and January 2022 ($11.25, $15.00) rates and how the two orders relate. acquisition.gov
  • U.S. Dept. of Labor, Wage and Hour Division, Final Rule: Increasing the Minimum Wage for Federal Contractors (Executive Order 14026) — the agency's current notice confirming it is no longer enforcing EO 14026 following its 2025 rescission, archived June 27, 2026. web.archive.org
  • The White House, Executive Order 14236, Additional Rescissions of Harmful Executive Orders and Actions (March 14, 2025; 90 FR 13037) — the order revoking EO 14026, published in the Federal Register. federalregister.gov
  • U.S. Dept. of Labor, Wage and Hour Division, Increasing the Minimum Wage for Federal Contractors, Final Rule and Regulatory Impact Analysis (Federal Register 2021-25317, Nov. 24, 2021) — source for 's own estimate of 327,000 affected workers and $1.7 billion in annual wage transfers, and for its citation of EPI's estimate. federalregister.gov
  • Ben Zipperer and Heidi Shierholz, Economic Policy Institute, Up to 390,000 federal contractors will see a raise under the Biden-Harris executive order (April 27, 2021) — independent estimate of up to 390,000 workers affected, a $3,100 average annual raise, and a 226,000 lower-bound estimate. epi.org
  • U.S. Court of Appeals for the Ninth Circuit, State of Nebraska v. Su, 121 F.4th 1, No. 23-15179 (9th Cir. Nov. 5, 2024) — the opinion holding that EO 14026 exceeded presidential procurement authority, part of the circuit split the Supreme Court declined to resolve. cdn.ca9.uscourts.gov
  • Holland & Knight, President Trump Rescinds Biden Administration Federal Contractor Minimum Wage (March 2025) — secondary legal analysis cited for the observation that most current federal contracts began after January 30, 2022 and therefore fall outside EO 13658's reinstated coverage. hklaw.com
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