The United States Department of Labor (DOL) has announced increases to the minimum wages that federal contractors covered under Executive Orders (EO) 13658 and 14026 must pay their employees who are performing work on or in connection with certain covered federal contracts.
The Details:
Effective January 1, 2024, federal contractors covered under EO 13658 must pay at least a minimum wage of $12.90 per hour to non-tipped employees and pay tipped employees at least a minimum cash wage of $9.05 per hour. Generally, EO 13658 pertains to covered contracts that were entered into, renewed or extended prior to January 30, 2022.
Effective January 1, 2024, federal contractors covered under EO 14026 must pay at least a minimum wage of $17.20 per hour to employees. Generally, EO 14026 pertains to covered contracts that were entered into, renewed, or extended on or after January 30, 2022.
Note: Beginning January 1, 2024, EO 14026 eliminates the lower cash wage that contractors may pay tipped employees performing work on or in connection with covered contracts.
Next Steps:
Federal contractors, as of January 1, 2024, must pay at least the minimum wages as outlined above.
Have Questions?
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