Federal Contractor Minimum Wage Update: What You Need to Know for 2026

If you’ve been keeping an eye on federal contractor wage rules, there’s an upcoming update worth your attention. The U.S. Department of Labor has officially announced new minimum wage rates under Executive Order 13658, and it’s going into effect very soon.

Which Contracts Does This Apply To?

This Executive Order only applies to federal contracts that:

• Were entered into between January 1, 2015, and January 29, 2022, and
• Have not been renewed or extended on or after January 30, 2022

If your contract falls outside that window, different rules may apply.

What’s Changing?

Starting May 11, 2026, the minimum wage for certain federal contract workers will increase to:

• $13.65 per hour for non-tipped employees
• $9.55 per hour for tipped employees

What About Newer Contracts?

In 2025, Executive Order 14026, which had set a higher minimum wage for newer federal contracts, was revoked. As a result the Department of Labor is no longer enforcing that rule and guidance for contracts entered into after January 30, 2022 is limited.

Who’s NOT Covered?

Not all contracts fall under EO 13658. For example, seasonal recreational service contracts are excluded per other executive orders

Don’t Forget the Poster Requirement

Federal contractors covered by EO 13658 are required to display a minimum wage notice where employees can easily see it. The updated poster reflecting the 2026 wage increase hasn’t been released just yet, but it’s expected closer to the effective date of May 11, 2026.

What Should You Do Now?

Review your contracts – Make sure you know which ones fall under EO 13658.
Update pay rates – Ensure compliance by May 11, 2026.
Watch for updates – Especially if you have contracts post-2022.
Prepare for posting requirements – New notice is coming.

Final Thoughts

While the wage increase itself is relatively modest, the regulatory landscape behind it is anything but simple. Between revoked executive orders and narrowing contract coverage, it’s more important than ever to stay informed. If you’re unsure where your contracts fall or just want to make sure you’re buttoned up, this is a good time to take a closer look.

Resources:

DOL: Wage & Hour Division: Executive Order 13658

Federal Register: Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect

Jackson Lewis: Some Federal Contract Workers Set to Receive $13.65 Minimum Wage