DOL Raises Federal Contractor Minimum Wage to $14.05/hr

HR Dive · United States · Oct 7, 2026

The U.S. Department of Labor will increase the minimum wage for certain federal contractors to $14.05 per hour and the tipped minimum wage to $9.85 per hour, per a forthcoming Federal Register notice. The new rates take effect 90 days after publication and apply to contracts originally entered between Jan. 1, 2015, and Jan. 29, 2022, that were not renewed or extended after Jan. 30, 2022 — contracts still governed by Obama's Executive Order 13658 following Trump's revocation of Biden's EO 14026 in March 2025. The current rates of $13.65 and $9.55 remain in effect until the 90-day period lapses. Staffing firms holding or supplying workers on older federal contracts should audit their pay structures to ensure compliance before the new rates kick in.