Executive Orders establishes a minimum wage for certain Federal contractors. The Executive Orders require parties who contract with the Federal Government generally to pay workers performing work on or in connection with covered Federal contracts at least:
(1) On September 15, 2021, the Department of Labor announced a Notice in the Federal Register to announce that, beginning January 1, 2022, the Executive Order 13658 minimum wage rate is increased to $11.25 per hour (86 FR 51683). This Executive Order minimum wage rate generally must be paid to workers performing work on or in connection with covered contracts.
- Additionally, beginning January 1, 2022, tipped employees performing work on or in connection with covered contracts generally must be paid a minimum cash wage of $7.90 per hour.
(2) Covered contracts that are entered into on or after January 30, 2022, or that are renewed or extended (pursuant to an option or otherwise) on or after January 30, 2022, will be generally subject to a higher $15.00 minimum wage rate established by Executive Order 14026 of April 27, 2021, Increasing the Minimum Wage for Federal Contractors.