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Executive Order 14026 Regarding Federal Contractor Minimum Wage Rescinded. Minimum wage from Executive Order 13658 back in effect.

04/03/25

Author: ADP Admin/Thursday, April 3, 2025/Categories: Compliance Corner , Federal Compliance Update

President Trump has rescinded Executive Order 14026 that generally pertains to covered contracts that were entered into, renewed, or extended on or after Jan. 30, 2022.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EO 13658 a previous order setting a lower minimum wage, was not rescinded.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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Tags: Compliance Corner04/03/25

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