The minimum wage for work performed on or in connection with federal contracts will increase as follows:
- Contracts Covered by Executive Order 13658 – The minimum wage will increase to $13.30 per hour, and the minimum base wage for tipped employees will increase to $9.30 per hour. Per the Department of Labor, Executive Order 13658 generally covers the following types of contracts issued between January 1, 2015 and January 29, 2022 with the federal government:
- Construction contracts covered by the Davis-Bacon Act (DBA)
- Service contracts covered by the Service Contract Labor Standards (SCLS)
- Concessions contracts that grant the federal government the right to use its property for services, such as food, lodging, or fuel
- Contracts for services in federal buildings that provide services for federal employees or the public, such as child care or dry cleaning
- Contracts Covered by Executive Order 14026 – The minimum wage will increase to $17.75 per hour for both tipped and non-tipped employees. The Department of Labor published a notice in the Federal Register (Minimum Wage for Federal Contracts Covered by Executive Order 14026, Notice of Rate Change in Effect as of January 1, 2025). Per the Department of Labor FAQ, This Executive Order minimum wage generally applies to workers performing work on or in connection with federal contracts that are entered into, renewed, or extended (pursuant to an option or otherwise) on or after January 30, 2022, in the following four categories:
- Procurement contracts for construction covered by the DBA
- Service contracts covered by the SCLS
- Concessions contracts, including any concessions contract excluded from the SCA by the Department’s regulations at 29 CFR 4.133(b); and
- Contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the public
The Department of Labor has published helpful FAQs and a side-by-side comparison here.