Federal contractor minimum wage increase announced

11/03/22

Author: ADP Admin/Tuesday, November 1, 2022/Categories: Compliance Corner

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 its employees who are performing work on or in connection with certain covered federal contracts.  

The Details: 

Effective Jan. 1, 2023, federal contractors covered under EO 13658 must pay at least a minimum wage of $12.15 per hour to non-tipped employees and pay tipped employees at least a minimum cash wage of $8.50 per hour. Generally, EO 13658 pertains to covered contracts that were entered into, renewed or extended prior to Jan. 30, 2022.

Effective Jan. 1, 2023, federal contractors covered under EO 14026 must pay at least a minimum wage of $16.20 per hour to non-tipped employees and pay tipped employees  at least a minimum cash wage of $13.75 per hour. Generally, EO 13658 pertains to covered contracts that were entered into, renewed or extended on or after Jan. 30, 2022.

Next Steps:

Federal Contractors, as of Jan. 1, 2023, must pay at least the minimum wages as outlined above.

Have Questions?

Please contact your dedicated service professional with any questions.  

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