Final Rule: Increasing the Minimum Wage for Federal Contractors (Executive Order 14026) (2024)

FAQs

What is the final rule of the Executive Order 14026? ›

On April 21, 2021, President Joe Biden signed Executive Order 14026, which again raised the minimum wage paid by certain government contractors to $15.00 as of Jan. 1, 2022. Under that executive order, the DOL issued a notice increasing the minimum hourly wage to $16.20 per hour effective Jan. 1, 2023.

14026 minimum wage. Similar to other workers subject to EO 14026, tipped employees must be paid a cash wage of at least $17.20 per hour, effective January 1, 2024, through December 31, 2024. “in connection with” covered contracts for less than 20 percent of their hours worked in a week.

Executive Order 14026 establishes a higher hourly minimum wage of $15.00 per hour, beginning on January 30, 2022, and, beginning January 1, 2023, and annually thereafter, an amount determined by the Secretary in accordance with the order.

13658 is superseded by E.O. 14026 to the extent that it is inconsistent with E.O. 14026; the minimum wage rate for certain workers is increased to $15.00 per hour. The wage rate is subject to annual increases by an amount determined by the Secretary of Labor.

On January 1, 2024, the hourly minimum wage for certain federal contractor employees will increase to $17.20, according to a Notice issued by the Wage and Hour Division of the United States Department of Labor (DOL) and published in the Federal Register on September 28, 2023.

EO 14026 applies to contracts, subcontracts or contract-like instruments if the agreement is: A procurement for services or construction; For services covered by the Service Contract Act (SCA); For concessions, including any concessions excluded by the Department of Labor Regulations at 29 C.F.R.

Executive Order 14026 requires contractors to pay covered workers who qualify as tipped employees pursuant to section 3(t) of the FLSA a cash wage of at least i) $10.50 an hour, beginning on January 30, 2022; ii) 85 percent of the Executive Order minimum wage rate, as annually adjusted, beginning January 1, 2023: and, ...

Beginning on January 1, 2024, the Executive Order 14026 minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $17.20 per hour.

Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.

In general, increasing the federal minimum wage would raise the earnings and family income of most low-wage workers and thus lift some families out of poverty—but doing so would cause other low-wage workers to become jobless, and their family income would fall.

Why we should increase the federal minimum wage? ›

It acts as a safeguard against extremely low wages and helps reduce poverty and income inequality within a society. By setting a minimum wage, governments aim to promote decent working conditions and provide a degree of economic security for workers.

Effective January 1, 2024, the minimum wage for workers who perform work on or in connection with federal contracts will increase from $16.20 per hour to $17.20 per hour. This will apply to most federal contracts entered into or extended on or after January 30, 2022.

Presidential executive orders, once issued, remain in force until they are canceled, revoked, adjudicated unlawful, or expire on their terms. At any time, the president may revoke, modify or make exceptions from any executive order, whether the order was made by the current president or a predecessor.

An executive order is defined as a declaration by the president or a governor which has the force of law, usually based on existing statutory powers. Executive orders do not require any action by the Congress or state legislature to take effect, and the legislature cannot overturn it.

An executive order is simply a directive from the President to Federal agencies, officials, and employees of the executive branch on how to carry out the the function of government. It is not a law. It is only binding to the executive branch.

Executive Order 14026 requires contractors to pay covered workers who qualify as tipped employees pursuant to section 3(t) of the FLSA a cash wage of at least i) $10.50 an hour, beginning on January 30, 2022; ii) 85 percent of the Executive Order minimum wage rate, as annually adjusted, beginning January 1, 2023: and, ...

What Does Executive Order 13672 Require? Pursuant to the final rule, federal (sub)contractors cannot discriminate against an individual on the basis of their sexual orientation or gender identity. Federal contractors must also revise their equal opportunity clause to include sexual orientation and gender identity.

EO 14042 required certain parties contracting with the Federal Government to provide COVID-19 safeguards to their workers. As a result of EO 14042, your contract may have included FAR clause 52.223-99 (Ensuring Adequate COVID-19 Safety Protocols for Federal Contractors).