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

The U.S. Department of Labor has announced an increase to the minimum wage for certain workers performing work on or in connection with federal contracts covered by Executive Order 13658. Effective May 11, 2026, covered contractors must comply with the new wage rates and applicable employee notice requirements.

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?

Effective May 11, 2026, the minimum wage under Executive Order 13658 increases to:

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

What About Newer Federal 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In 2025, Executive Order 14026, which had set a higher minimum wage for newer federal contracts, was revoked.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

Employers covered by Executive Order 13658 also have employee-notice obligations.

For certain FLSA-covered workers performing work on or in connection with a covered contract, contractors may satisfy the notice requirement by displaying the Department of Labor's Executive Order 13658 poster in a prominent and accessible location at the worksite. Different notice methods may apply to workers covered by the Service Contract Act or Davis-Bacon Act.

The Department of Labor has released the updated 2026 Executive Order 13658 poster, which displays the new $13.65 per hour minimum wage effective May 11, 2026.

Employers should review their applicable federal labor law poster requirements and make sure required workplace notices are current. Labor Law Compliance Center provides labor law posters and monitors mandatory posting changes to help employers keep workplace postings up to date.

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 covered contracts to determine whether Executive Order 13658 applies.
Update applicable wage rates to $13.65 per hour beginning May 11, 2026.
Review tipped-worker requirements where applicable.
Update required workplace notices with the current Executive Order 13658 poster.
Continue monitoring federal contractor requirements, particularly following the revocation of Executive Order 14026.

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.