The minimum wage rates for work performed on some government contracts will increase January 1, 2025, the U.S. Department of Labor announced September 30, 2024. The rate on government contracts subject to President Obama’s Executive Order 13658—which governs government contracts entered into, renewed, or with options exercised before January 30, 2022—will increase from $12.90 to $13.30. The rate on contracts subject to President Biden’s Executive Order 14026—which governs government contracts entered into, renewed, or with options exercised on or after January 30, 2022—will increase from $17.20 an hour to $17.75 an hour.
Both E.O.s contain an escalator clause that requires DOL to adjust the federal contractor minimum wage annually based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.