On March 14, President Donald Trump signed an executive order that, among other actions, rescinded former President Joe Biden’s Executive Order 14026, Increasing the Minimum Wage for Federal Contractors.

On Nov. 22, 2021, the U.S. Department of Labor’s Wage and Hour Division issued its final rule implementing President Biden’s order, which applied to all workers performing work on or in connection with covered federal contracts. The final rule increased the minimum wage to $15 per hour on Jan. 30, 2022, and indexed the wage to inflation. As of Jan. 1, 2025, the minimum wage had increased to $17.75.

ABC submitted comments opposing the rule when it was proposed. ABC asserted that while most of ABC’s federal contractor members already pay the vast majority of their workers higher than the minimum wage, the rule ignored Congress’s authority, failed to establish a market-driven approach and needlessly increased compliance burdens.

Next, the WHD will likely formally rescind the final rule through the rulemaking process.