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. The wage increase for federal contractor employees extends the previous increase from January 1, 2023, to $16.20, which utilized Executive Order 14026 as a basis for the increase. The new rate will apply to any contract entered into, renewed, or extended on or after January 30, 2022. Further, under this Notice, the DOL noted that it was phasing out the lower wage rate that previously applied to tipped employees working under federal contracts.
Federal Contractor Hourly Minimum Wage Increased to $17.20 Starting January 1, 2024
Cozen | Oct 2023
Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect as of January 1, 2024
Federal Register Notice | Sep 2023
Poster: Per the Federal Register Notice just above, a poster reflecting the new Executive Order 13658 minimum wage rate will be publicly available on the WHD website on January 1, 2024.
Additional Articles
Another Minimum Wage Increase on the Horizon for Federal Contractors
Baker Hostetler | Oct 2023
Minimum Wage Increase for Federal Contractors
Schwabe | Oct 2023
Related Reading: Rule Blocked in Three States
On January 1, 2023, a new regulation from the Department of Labor took effect that raised the minimum hourly wage applicable to certain federal contractors. But this past Tuesday (September 26, 2023), a federal judge in Victoria, Texas, entered an injunction prohibiting the DOL from enforcing the rule in the states of Texas, Louisiana, and Mississippi.
Minimum Wage Hike for Federal Contractors Halted in the Fifth Circuit
Jackson Walker | Sep 2023
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