Federal contractors may need to be prepared to increase pay for employees working on, or in connection with, covered federal government contracts. The hourly minimum wage for employees performing work on federal contracts will rise from $17.20 to $17.75 on Jan. 1, 2025, the Department of Labor (DOL) has announced. The new minimum wage rate will apply in full to tipped and non-tipped employees alike, as well as to workers with disabilities.
Contracts entered into, renewed, or extended prior to Jan. 30, 2022, generally remain subject to the minimum wage rate under Executive Order 13658. The operative minimum wage for those contracts will increase from $12.90 to $13.30 per hour.
Federal Contractors Should Prepare for 2025 Minimum Wage Hike as Legal Challenges Unfold
Jackson Lewis | Oct 2024
Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect as of January 1, 2025
Federal Register Notice | Oct 2024
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, 2025.
Articles
Bigger Pay Days Are Coming for Some Federal Contract Workers in 2025
Convington | Oct 2024
2025 Federal Contractor Minimum Wage Rates Announced
Berkshire | Sep 2024
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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