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Working for a company that holds a federal contract does not, by itself, prove that you are entitled to a federal-contractor minimum wage. Coverage depends on the contract’s type and dates, the work you perform, which wage law governs you, and several exclusions.
For qualifying older contracts covered by Executive Order 13658, the U.S. Department of Labor lists a minimum of $13.65 an hour for non-tipped work and $9.55 for tipped work beginning May 11, 2026. A Service Contract Act or Davis-Bacon Act wage determination, or a higher state or local requirement, can require more. Use the records-and-steps below to check your situation.
What changed: the federal contractor wage rules in 2025 and 2026
The first step is identifying which executive order applies. Executive Order 14236, issued March 14, 2025, revoked Executive Order 14026, the order associated with the frequently cited $15 federal-contractor minimum. The Department of Labor’s Wage and Hour Division (WHD) says it is no longer enforcing EO 14026 or its implementing regulation, 29 CFR part 23, and plans to rescind that regulation.
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For qualifying EO 13658 work, WHD’s 2026 annual update lists, beginning May 11, 2026:
| Worker category | EO 13658 floor from May 11, 2026 | Important qualification |
|---|---|---|
| Non-tipped worker | $13.65 per hour | The contract’s wage determination or another federal, state, or local law may require more. |
| Tipped worker | $9.55 per hour | This is an order-specific tipped rate; other applicable wage rules can be higher. |
These figures are not a universal wage for everyone employed by a federal contractor. You still have to establish that the contract and your duties fall within EO 13658, then compare the order’s floor with the wage determination and every higher applicable requirement.
“The Department of Labor is no longer enforcing Executive Order 14026 or the implementing rule (29 CFR part 23) and will take steps, including rescinding 29 CFR part 23, to implement and effectuate the revocation of Executive Order 14026.”
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The documents you need before deciding coverage
A reliable answer normally comes from the contract file, not from your employer’s industry label or a job-title search. Ask for these items in writing:
- Federal contract or subcontract number.
- The wage clause incorporated into the contract.
- Original award date.
- Dates of every exercised option, renewal, or extension.
- The wage determination attached to the contract, including its occupation or classification.
- Your worksite or other actual work location.
- Time records showing hours spent on contract duties and, where relevant, support duties during each workweek.
- Payroll records showing your hourly rate, overtime treatment, tips, and any fringe or benefit amounts that the applicable wage determination addresses.
If you work for a subcontractor, request the information from your payroll or contract-compliance contact and from the prime contractor. A contracting agency can also identify the clause and wage determination attached to the instrument. Employers and contracting agencies have notice obligations for covered work, including use of a wage determination or posted notice.
Step 1: Confirm that the contract is in a covered category
EO 13658 coverage is tied to specified kinds of federal contracts. Compare the contract against these categories rather than assuming every federal purchase qualifies.
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Procurement construction covered by the Davis-Bacon Act
Qualifying procurement construction contracts subject to the Davis-Bacon Act (DBA) can fall within the executive-order framework. The DBA wage determination and classification may set a rate above the EO floor. Construction work that is outside DBA coverage may also be excluded from EO 13658.
Services covered by the Service Contract Act
Federal service contracts subject to the Service Contract Act (SCA) are another central category. An SCA wage determination can specify a higher monetary wage and fringe-benefit obligation for your classification and locality. Some services exempt from the SCA are excluded from the executive-order coverage analysis.
Concessions on federal property
Concessions contracts can include operations that provide services on federal property. Examples identified by WHD include food, lodging, fuel, souvenirs, and recreational equipment. Your actual concession operation, location, and contract clause still have to be checked.
Services connected with federal property or land
Certain contracts connected to federal property or land to offer services to federal employees, their dependents, or the public can qualify. The contract must be examined to determine whether the statutory and executive-order conditions are met.
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Common contract exclusions
WHD identifies several exclusions or limits that can end the analysis before your individual job is considered:
- Grants and certain tribal agreements.
- Some construction procurement contracts that are not subject to the DBA.
- Some services exempt from the SCA.
- Contracts solely for manufacturing or furnishing goods.
Do not infer an exclusion from a short description such as “supply,” “support,” or “maintenance.” Use the actual instrument and its clauses.
Step 2: Apply the contract-date test
Dates are often decisive. Under WHD’s current description, EO 13658 primarily covers a qualifying contract entered into, renewed, or extended between January 1, 2015, and January 29, 2022, when it was not renewed or extended on or after January 30, 2022.
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A contract first awarded in the older period may therefore require a different result after a later option exercise or extension. A qualifying post-January 29, 2022 renewal or extension generally moved the instrument into EO 14026’s framework; WHD now says it no longer enforces that framework after EO 14236 revoked EO 14026. Because agencies and contractors must apply the clauses to the specific instrument, obtain the written contract history instead of relying on an award-date rumor.
| Contract fact pattern | What it tells you | What to verify |
|---|---|---|
| Entered into, renewed, or extended from January 1, 2015 through January 29, 2022; no later renewal or extension | Potential EO 13658 coverage | Covered category, clause, worker duties, and wage determination |
| Older contract later renewed or extended on or after January 30, 2022 | Generally moved into the EO 14026 framework, which WHD says it no longer enforces | Agency treatment of the instrument and any other applicable wage law |
| Contract dates or amendments are unclear | Coverage cannot be decided from the available facts | Complete award, option, renewal, and extension record |
Step 3: Match your job to the contract
Coverage follows the work you perform, not merely the name of your employer. WHD distinguishes work performed “on” a contract from work performed “in connection with” it.
Work performed directly on the contract
You are generally working on the contract when your assigned duties are the specific services or construction the contract requires. Examples could include performing the contracted service at the designated site or carrying out the construction trade described in the statement of work. Your classification still must be matched to the governing wage rule.
Work performed in connection with the contract
Necessary support work can be in connection with a covered contract even when it is not the principal deliverable. Examples may include support activity that enables the contract operation to function. The employer must be able to identify the connection and the hours attributable to it.
Workers whose wages are governed by FLSA, SCA, or DBA rules
WHD states that workers whose wages are governed by the Fair Labor Standards Act (FLSA), SCA, or DBA are generally covered when they perform work on or in connection with a covered contract, subject to the order’s exclusions. Determine which law governs your wages before selecting a rate.
Step 4: Check the 20-percent rule and employee exemptions
The 20-percent workweek test
For an FLSA-covered worker who performs work only in connection with a covered contract, WHD describes a specific threshold: the worker is excluded when they spend less than 20% of their work hours in a particular workweek on connection work. This is a workweek-by-workweek test, not a permanent percentage based on your job title or annual schedule.
Calculate the percentage from contemporaneous time records:
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- Total your hours worked in the particular workweek.
- Identify the hours that were in connection with the covered contract.
- Divide connection hours by total hours and multiply by 100.
- Compare the result with 20%.
For example, 8 connection hours in a 40-hour workweek equals 20%. Six connection hours equals 15%, which is below the described threshold. Preserve the underlying assignments and time records; an estimate without records may be disputed.
Bona fide executive, administrative, and professional employees
Bona fide executive, administrative, and professional employees who are exempt from FLSA minimum-wage requirements are excluded from the EO 13658 minimum-wage protection. A managerial-sounding title is not enough to establish an exemption; the applicable FLSA duties and pay tests must be satisfied.
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Step 5: Identify the rate that actually controls
Once a contract and your duties appear covered, compare the EO 13658 floor with the wage determination for your classification and location. Then check state and local minimum-wage requirements and any other applicable federal rule. The controlling obligation is the highest applicable requirement; the executive-order floor does not displace a higher SCA or DBA rate or a higher state or local wage.
Check the wage determination, not only the base hourly rate
SCA and DBA determinations can be classification- and locality-specific. An SCA determination may also address fringe benefits. Confirm whether the amount shown in your payroll records is the required monetary wage, a permitted credit, or a combined wage-and-fringe arrangement under the applicable rule.
Check the real work location and classification
Use the location where the covered work is performed and the classification that matches the duties. A corporate office address, a home address, or a generic job title may produce the wrong determination. If your duties span classifications or locations, ask how the contract administrator allocates the hours.
Check tipped-work treatment carefully
The EO 13658 table distinguishes tipped and non-tipped workers, but tip credits and other pay calculations can be governed by additional federal, state, local, or contract rules. Review the wage clause and payroll method rather than assuming that tips automatically make the lower order-specific rate lawful.
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- Write down your job facts. Record employer, worksite, job title, actual duties, pay rate, tip status, usual schedule, and the federal customer or property involved.
- Request the contract trail. Ask for the contract or subcontract number, wage clause, award date, option and extension dates, and wage determination.
- Classify the contract. Decide whether it is DBA construction, SCA service work, a qualifying concession, or another covered federal-property service. Note any exclusion that appears in the instrument.
- Apply the date rule. Check every renewal and extension against January 30, 2022, not just the original award date.
- Map your hours. Separate direct contract work, connection work, and unrelated work for every relevant workweek.
- Check FLSA status. Determine whether FLSA, SCA, or DBA governs your wages and whether a bona fide executive, administrative, or professional exemption applies.
- Run the 20-percent calculation when applicable. Use it only for the FLSA-covered, connection-work situation described by WHD.
- Compare pay with every floor. Start with the applicable wage determination, then compare the EO rate and higher federal, state, or local requirements. Include any required fringe-benefit treatment.
- Document the result. Keep the contract response, wage determination, schedules, time records, pay statements, and your calculation together.
What to do when the employer will not provide records
Send a short written request to payroll, human resources, or the contract-compliance contact. Ask specifically for the contract number, wage clause, award and renewal dates, wage determination, your classification, and the records showing hours on or in connection with the contract.
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If you are employed by a subcontractor, copy the prime contractor’s compliance contact. The contracting agency can confirm which clause and wage determination govern the instrument. Keep copies of requests and responses, and avoid altering original time records. If the response is incomplete, list the missing item rather than arguing from a general statement that the company is a federal contractor.
When and how to seek help
The WHD handles federal-contractor wage guidance and complaints about alleged violations. Use the Department of Labor’s current Wage and Hour Division contact and complaint instructions for the filing method, required information, and available remedies; agency procedures can change.
Before contacting WHD, assemble your contract number if available, employer and prime-contractor names, worksite, dates worked, job duties, pay statements, time records, wage determination, and copies of your written requests. Explain the specific mismatch: for example, a missing wage determination, an incorrect classification, unpaid fringe obligations, or pay below the applicable floor. Do not assume that a complaint will be resolved from your job title alone; the agency will need contract and work records.
Common mistakes that produce the wrong answer
- Using the old $15 figure automatically. EO 14026 was revoked, and WHD says it is no longer enforcing that order or 29 CFR part 23.
- Assuming every federal contractor job is covered. Contract category, dates, duties, wage-law status, and exclusions all matter.
- Looking only at the original award date. A later renewal or extension can change the analysis.
- Counting every company hour as contract work. The connection-work calculation depends on the hours in the particular workweek.
- Treating a job title as an FLSA exemption. The duties and pay tests control.
- Ignoring the wage determination. SCA or DBA rates and fringe obligations can exceed the executive-order floor.
- Using the wrong location. Rates can vary by the place where covered work is performed.
- Assuming tips settle the issue. Tipped-worker treatment remains subject to the applicable contract and wage laws.
- Relying on an oral answer. Keep the contract clause, determination, schedules, and payroll records that support the conclusion.
A practical decision tree
- Is there a qualifying federal contract? If no, EO 13658 coverage is unlikely; check ordinary federal, state, and local wage laws instead. If yes, continue.
- Is the contract in a covered category? Check DBA construction, SCA services, qualifying concessions, or covered federal-property services. If an exclusion applies, document it.
- Do the dates fit EO 13658? Confirm the January 1, 2015–January 29, 2022 cohort and the absence of a renewal or extension on or after January 30, 2022.
- Do your duties qualify? Identify direct contract work or connection work and calculate the workweek percentage where the 20-percent test applies.
- Does an exemption apply? Check bona fide executive, administrative, or professional FLSA status.
- What rate is highest? Compare the applicable wage determination, EO 13658 rate, and higher federal, state, or local requirements at your actual location and classification.
What you should be able to show at the end
A defensible conclusion is a short file, not a guess. It should identify the contract and clause, the award and amendment dates, the covered category, your duties and workweek hours, any FLSA/SCA/DBA status or exemption, the wage determination and location, the applicable rate comparison, and the payroll difference, if any. If one of those facts is missing, label the result provisional and obtain the missing record before asserting that your employer owes a particular amount.
Frequently Asked Questions
Does working for a federal contractor automatically qualify me for the federal contractor minimum wage?
No. Coverage requires a qualifying contract, the right contract dates, covered duties, applicable wage-law status, and no controlling exclusion.
Is the federal contractor minimum still $15 an hour?
The Department of Labor says Executive Order 14026 was revoked in March 2025 and is no longer being enforced. Check whether EO 13658 or another wage rule applies to your contract instead.
Who should I ask for the contract and wage determination?
Start with payroll or contract compliance, then ask the prime contractor if you are a subcontractor. The contracting agency can also identify the governing clause and wage determination.
What’s actually slowing this PC down?
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What if my employer refuses to investigate?
Keep your written requests and records, then use the Department of Labor Wage and Hour Division’s current contact and complaint instructions for guidance on a possible complaint.
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