On February 9, 2026, the U.S. Department of Labor (DOL) announced updated minimum wage rates for certain federal contracts covered by Executive Order 13658.
Effective May 11, 2026, the minimum wage increased to $13.65 per hour for non-tipped employees and $9.55 per hour for tipped employees on covered legacy federal contracts.
This update applies to certain federal contracts entered into between January 1, 2015, and January 29, 2022, that were not renewed or extended on or after January 30, 2022.
What Employers Need to Do
- Review whether any covered legacy federal contracts remain active after May 11, 2026.
- If so, update pay rates to at least $13.65 per hour or $9.55 per hour for tipped employees and ensure the applicable federal contractor notice is posted.
Overview
- On February 9, 2026, DOL announced that the Executive Order 13658 minimum wage for certain covered federal contracts would increase to $13.65 per hour and $9.55 per hour for tipped employees, effective May 11, 2026.
- The update applies only to certain federal contracts entered between January 1, 2015, and January 29, 2022, that were not renewed or extended on or after January 30, 2022.
Why This Matters
This is a narrow rate update for covered legacy federal contracts that were already addressed in Vensure’s earlier communication.
Key Risks for Employers
- Assuming the prior communication’s rates are still current, even though DOL later increased the Executive Order 13658 rates.
- Overlooking whether an older contract still falls within the limited legacy-contract scope.
Source References
- DOL Wage and Hour Division – Executive Order 13658, Establishing a Minimum Wage for Contractors: Annual Update
- Federal Register – Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect
- Federal: Federal Contractors Minimum Wage Reverted to the Obama Era Rates (VensureHR)
Schedule a Call
Learn more about VensureHR and how we can make an impact on your business.
Contact VensureHRThis communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.
