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The reported next federal contractor minimum wage is $14.05 an hour for non-tipped workers, not exactly $14. The U.S. Department of Labor’s current 2026 rates remain $13.65 for non-tipped workers and $9.55 in cash wages for tipped workers. The new rates apply only to a limited group of older contracts covered by Executive Order 13658 (EO 13658), not to every federal contractor.
What are the reported 2027 federal contractor minimum-wage rates?
Construction Dive reported on October 8, 2026, that DOL announced a rate of $14.05 per hour for non-tipped workers and a $9.85 per hour cash wage for tipped workers. The $14.05 figure is the exact reported standard rate; the headline’s “$14” is a rounded version. Construction Dive’s report is the available source for these announced figures.
These are future rates, not the rates currently in force. DOL lists the 2026 rates, effective May 11, 2026, as $13.65 per hour for non-tipped workers and $9.55 per hour in cash wages for tipped workers. DOL’s EO 13658 page provides the current rates and program information.
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| Worker category | Current rate in 2026 | Reported next rate |
|---|---|---|
| Non-tipped workers | $13.65 per hour, effective May 11, 2026; U.S. Department of Labor | $14.05 per hour; announced rate reported by Construction Dive on October 8, 2026 |
| Tipped workers | $9.55 per hour in cash wages, effective May 11, 2026; tips must make up the difference to $13.65 | $9.85 per hour in cash wages; announced rate reported by Construction Dive on October 8, 2026. The final notice’s detailed terms should be checked for the applicable tip top-up requirement. |
When does the reported increase take effect?
Construction Dive says the new rates take effect 90 days after publication of the notice in the Federal Register. The report does not establish a calendar effective date here, so do not calculate one from the report date alone. Employers and workers should check the published notice for its publication date and effective-date language before relying on a specific day.
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Which contracts and workers are covered?
The reported adjustment concerns the residual category of contracts covered by EO 13658. DOL describes the order as principally applying to contracts subject to the Davis-Bacon Act or Service Contract Act that were entered into from January 1, 2015, through January 29, 2022, and were not renewed or extended on or after January 30, 2022. Construction Dive reports that the 2027 adjustment applies to this legacy-contract category.
EO 13658 also covers specified concessions and certain services provided in connection with federal property or lands, while excluding seasonal recreational services under other executive orders. Whether an individual worker is entitled to the rate depends on the contract and work—not simply on whether the employer does business with the federal government. Check the contract’s wage determination and DOL’s EO 13658 guidance.
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How does the tipped-worker rate work?
The reported $9.85 is a cash wage, not the full minimum for tipped workers. Under the 2026 structure described on DOL’s worker poster, employers pay $9.55 in cash wages and tips must bring total compensation to at least $13.65 per hour. For the reported 2027 figures, confirm the final notice’s precise tip-credit and top-up terms once it is published. DOL provides its Worker Rights Under Executive Order 13658 poster.
Why is the reported rate below the former $15 minimum?
The former $15 federal contractor minimum was associated with Executive Order 14026, not the continuing EO 13658 schedule. DOL says President Trump revoked EO 14026 on March 14, 2025, and that the department is no longer enforcing that order or its implementing rule. DOL says EO 13658 remains applicable to its residual legacy-contract category; the reported $14.05 rate is an adjustment under that order, not a universal reduction from $15 for every federal contract.
DOL states, “The Department of Labor is no longer enforcing Executive Order 14026 or the implementing rule (29 CFR part 23).” Its EO 13658 frequently asked questions explain the agency’s position following the revocation. Construction Dive quotes the notice as saying, “As a result, at this time Executive Order 13658 remains in effect.”
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