/>iAmong the flurry of Executive Orders signed by President Trump since he took office is an March 14, 2025 Executive Order rescinding 18 prior executive orders and actions, including Executive Order 14026, a Biden-era order increasing the minimum wage for federal contractors to $17.75. Now that Executive Order 14026 has been rescinded, many federal contractors have been left wondering what the current minimum wage is for their employees.
Recent History on Federal Contractor Minimum Wage
The status of the federal contractor minimum wage has been in flux for some time. In 2014, President Obama issued Executive Order 13658, which provided for a $10.10 per hour federal contractor minimum wage that would subsequently increase on an annual basis for inflation. Years later, on April 27, 2021, President Biden signed Executive Order 14026, which increased the minimum wage for federal contractors to $15.00 per hour, to be adjusted periodically for inflation. Executive Order 14026 built upon the prior Obama-era order, but President Biden’s order provided broader coverage, higher thresholds and superseded the Obama-era order to the extent it was inconsistent with the provisions in President Biden’s order.
Shortly after President Biden issued Executive Order 14026, the U.S. Department of Labor (“DOL”) issued regulations implementing the order and the Federal Acquisition Regulatory Council amended the federal procurement regulations accordingly. Per the order and those regulations, as of January 1, 2025, the minimum wage for federal contractors under Executive Order 14026 was $17.75 per hour.
In recent years, Executive Order 14026 has been challenged in multiple courts, resulting in a split in authority regarding its validity. Specifically, the U.S. Court of Appeals for the Ninth Circuit held in November 2024 that President Biden lacked authority to issue the order. However, Executive Order 14026 was upheld by the Fifth and Tenth Circuits. In January 2025, the U.S. Supreme Court declined to address the split. Notably, since President Trump rescinded Executive Order 14026, on March 28, 2025, the Fifth Circuit vacated its previous ruling upholding it.
Where We Stand Today
Currently, the DOL rule implementing Executive Order 14026 remains on the DOL website, but the DOL has made clear that it will no longer enforce the now-rescinded order or the DOL regulations implementing it, and that the DOL intends to go through the regulatory process to officially effectuate its revocation.
Although President Biden’s order is no longer effective, President Trump’s March 14 Executive Order did not rescind the Obama-era Executive Order 13658. Accordingly, the lower minimum wage and narrower scope set forth in the 2014 order presumably remains in effect. As such, until the DOL provides more guidance, all indications are that the current federal contractor minimum wage is $13.30 per hour, under the terms of Executive Order 13658.
Until further regulatory action is taken, the rescission of Executive Order 14026 leaves some uncertainty about contractors’ obligations. Federal contractors with questions regarding their current obligations should consult with legal counsel to determine how they may be impacted by President Trump’s March 14 order. Further, contractors thinking about changing wages in response to Executive Order 14026’s rescission should review state wage law requirements and any collective bargaining agreements before doing so to ensure continued compliance with all other applicable requirements.
