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Wage and Hour Division [ https://www.dol.gov/agencies/whd/ ]
U.S. Department of Labor’s Wage and Hour Division Announces Annual Update to the Minimum Wage for Federal Contract Workers Under Executive Order 14026

On September 30, 2024, the U.S. Department of Labor’s Wage and Hour Division published a "Federal Register" notice, Federal Register :: Minimum Wage for Federal Contracts Covered by Executive Order 14026, Notice of Rate Change in Effect as of January 1, 2025 [ https://www.federalregister.gov/documents/2024/09/30/2024-22100/minimum-wage-for-federal-contracts-covered-by-executive-order-14026-notice-of-rate-change-in-effect ], an annual update to the hourly minimum wage for federal contract workers covered by Executive Order 14026. Beginning on January 1, 2025, the Executive Order 14026 minimum wage to 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 in full to tipped and non-tipped employees alike, as well as workers with disabilities. 

Executive Order 14026 was signed by President Biden on April 27, 2021. Building on the success of a similar Executive Order that was issued in 2014, Executive Order 14026 affirms that the Federal Government achieves greater value and increases efficiency when it contracts with companies that pay their workers competitive wages.

Contracts similar to those covered by Executive Order 14026 that were entered into, renewed, or extended prior to January 30, 2022, generally remain subject to the minimum wage rate under Executive Order 13658. On January 1, 2025, the Executive Order 13658 [ https://www.federalregister.gov/documents/2024/09/30/2024-22099/minimum-wage-for-federal-contracts-covered-by-executive-order-13658-notice-of-rate-change-in-effect ] minimum wage will increase from $12.90 to $13.30 per hour. 

Please visit www.dol.gov/agencies/whd/government-contracts/eo14026 [ http://www.dol.gov/agencies/whd/government-contracts/eo14026 ] for more details on Executive Order 14026.  

For more information about other WHD enforced laws, visit the Wage and Hour Division [ http://www.dol.gov/agencies/whd ], or call toll-free 1-866-4US-WAGE. 

 








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