President Trump has rescinded Executive Order 14026 that generally pertains to covered contracts that were entered into, renewed, or extended on or after Jan. 30, 2022.
The Details:
Prior to the rescission, effective Jan. 1, 2025, federal contractors covered under EO 14026 were required to pay at least a minimum wage of $17.75 per hour to employees. This minimum wage rate applied to both non-tipped and tipped employees. On the U.S. Department of Labor website, the agency indicated that it is “no longer enforcing” EO 14026 or the implementing rule.
Next Steps:
EO 13658 a previous order setting a lower minimum wage, was not rescinded. Consequently, effective Jan. 1, 2025, federal contractors covered under EO 13658 must pay at least a minimum wage of $13.30 per hour to non-tipped employees and pay tipped employees at least a minimum cash wage of $9.30 per hour. Generally, EO 13658 pertains to covered contracts that were entered into, renewed or extended prior to Jan. 30, 2022.,
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