On Sept. 30, the U.S. Department of Labor’s Wage and Hour Division issued an annual update to the hourly minimum wage for federal contract workers covered by Executive Order 14026, Increasing the Minimum Wage for Federal Contractors, in the Federal Register.

Effective Jan.1, 2025, the EO 14026 minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase from $17.20 to $17.75 per hour. This minimum wage rate will apply to nontipped and tipped employees alike. Visit the DOL’s webpage on EO 14026 for more information.

Contracts similar to those covered by EO 14026 that were entered into, renewed or extended before Jan. 30, 2022, are generally subject to a lower minimum wage rate established by the Feb. 12, 2014, Executive Order 13658, Establishing a Minimum Wage for Contractors. On Jan. 1, 2025, the EO 13658 minimum wage will increase from $12.90 to $13.30 per hour. 

Visit the DOL’s Wage and Hour Division for more information.