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Short answer: The federal contractor wage is not currently $14. Under the U.S. Department of Labor’s (DOL) 2026 update to Executive Order 13658, covered non-tipped workers must receive at least $13.65 per hour, and covered tipped workers at least $9.55 per hour, for work performed on or in connection with covered contracts beginning May 11, 2026. Eligibility depends on the specific federal contract, the worker’s duties, and whether the worker is covered by the Fair Labor Standards Act (FLSA), the Service Contract Act (SCA), or the Davis-Bacon Act (DBA).
The current rate is $13.65, not $14
The commonly quoted “$14 federal contractor minimum wage” is an approximation, not the rate in the DOL’s current 2026 update. Beginning May 11, 2026, Executive Order 13658’s annual adjustment sets these floors:
| Worker category | Minimum hourly rate | Effective date |
|---|---|---|
| Non-tipped workers | $13.65 | May 11, 2026 |
| Tipped workers | $9.55 | May 11, 2026 |
These are the DOL’s 2026 rates for workers on or in connection with covered contracts under Executive Order 13658. They are not a universal wage for everyone employed by a federal contractor. A state, local, or other federal requirement can set a higher rate, and a contract-specific wage determination can require more.
What happened to the former $15 rule?
Executive Order 14026, which had established a separate $15 federal-contractor framework, was revoked on March 14, 2025, by Executive Order 14236. The DOL says it no longer enforces Executive Order 14026 or its implementing regulation, 29 CFR part 23. Older articles that present $15 as the current generally applicable federal-contractor minimum therefore do not describe the current enforcement position.
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The relevant question in 2026 is whether the worker and contract fall under the applicable Executive Order 13658 rules, not whether the employer has any federal business at all.
Which contracts are covered?
Coverage starts with the contract. The DOL describes several general categories of contracts that can trigger the Executive Order 13658 wage floor.
Federal construction contracts covered by the DBA
Federal procurement contracts for construction that are covered by the Davis-Bacon Act are within the listed contract categories. Laborers and mechanics performing construction work called for by the contract may therefore be subject to the Executive Order minimum, along with any applicable DBA wage determination or higher requirement.
Federal service contracts covered by the SCA
Federal service contracts covered by the Service Contract Act are another major category. Service employees whose wages are governed by the SCA can qualify when they perform work on or in connection with the covered contract.
Concessions contracts
Concessions contracts are included. This can include concessions operated on federal property, such as services offered to people using that property. The contract still must satisfy the applicable coverage rules; the fact that a business operates at a federal location is not, by itself, enough.
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Certain federal-property and federal-land arrangements
Some contracts or leases involving federal property or land and services offered to federal employees, their dependents, or the public are covered. These arrangements require a review of the actual contract language and the services being provided rather than a conclusion based only on the worksite’s address.
Which workers can qualify?
The DOL’s general categories include FLSA minimum-wage employees, SCA service employees, and DBA laborers and mechanics who perform work on or in connection with a covered contract.
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Work performed “on” the contract
“On” means directly performing the service or construction called for by the contract. A cleaner assigned to clean a federal facility under a covered service contract, or a laborer installing materials required by a covered construction contract, is doing the contract work itself. Direct work is evaluated as the work the contract requires, not merely as a task that happens to occur at a contractor’s premises.
Work performed “in connection with” the contract
“In connection with” is broader. It can include duties necessary to the contract’s performance even when the employee does not perform the contract’s main service. A worker may therefore be covered because the worker’s duties support delivery of the contracted service or construction work.
For FLSA-covered employees whose work is only supporting work, the DOL’s rules include an important hours test: supporting work that is less than 20 percent of the employee’s hours in a particular workweek is excluded. That threshold is not a blanket exemption for someone directly performing work specifically required by the contract. The direct-work and supporting-work tests must be kept separate.
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Workers with FLSA section 14(c) certificates
Workers whose wages are calculated under an FLSA section 14(c) certificate are included in the covered-worker categories identified by the DOL. A 14(c) certificate does not automatically remove a worker from Executive Order coverage when the other contract and duty requirements are met.
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Even when a contract is covered, particular workers can fall outside the Executive Order minimum under listed exclusions.
Bona fide executive, administrative, and professional employees
Workers in bona fide executive, administrative, or professional roles who are exempt from the FLSA minimum-wage requirement are examples of excluded workers. The label in a job title is not the test; the worker must actually meet the applicable FLSA exemption. A person called a “manager” is not automatically excluded simply because that title appears on a payroll record.
Specified learners, apprentices, messengers, and full-time students
The DOL also identifies learners, apprentices, messengers, and full-time students employed under specified FLSA section 14(a) or 14(b) certificates as limited exclusions. The certificate and statutory conditions matter. A worker cannot be excluded merely because the employer describes the position as an apprenticeship or student job.
Supporting work below 20 percent for an FLSA-covered worker
An FLSA-covered employee whose duties are solely supporting a covered contract can be excluded when that supporting work is less than 20 percent of the hours worked in the relevant workweek. This rule applies to the supporting-work situation described by the DOL; it does not turn a worker doing the contract’s direct service into an excluded employee.
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How to determine whether a particular worker qualifies
Use the following sequence rather than starting with the employer’s name or the worker’s job title.
- Identify the federal instrument. Obtain the contract, lease, concession agreement, or task order and determine whether it fits a covered category: DBA construction, SCA services, concessions, or a qualifying federal-property or federal-land arrangement.
- Check the applicable Executive Order framework and dates. Confirm that the contract is being evaluated under the current Executive Order 13658 framework. Do not apply the revoked Executive Order 14026 rules as though they were still generally enforced.
- Identify the worker’s governing wage law. Determine whether the worker is covered under the FLSA, the SCA, or the DBA. The DOL’s entitlement wording ties the Executive Order minimum to workers whose wages under the contract are governed by one of those laws.
- Describe the actual duties. Decide whether the employee performs work directly called for by the contract (“on”) or performs necessary supporting work (“in connection with”). Use duties and work records, not only the payroll title.
- Apply the supporting-work percentage test when relevant. If an FLSA-covered worker performs only supporting duties, calculate the share of hours spent on that work for the particular workweek. Less than 20 percent falls within the stated exclusion; direct contract work is treated differently.
- Check for a listed exemption. Review bona fide FLSA executive, administrative, or professional status and any qualifying section 14(a) or 14(b) certificate for a learner, apprentice, messenger, or full-time student.
- Compare all wage requirements. Check the contract’s wage determination and clauses, plus state, local, and other federal wage laws. If another applicable rule requires more, the worker must receive the higher rate.
- Calculate the applicable floor. For a covered non-tipped worker under the 2026 update, use at least $13.65 per hour; for a covered tipped worker, use at least $9.55 per hour, subject to any higher requirement.
Examples of how the rules work
Direct service employee
A worker directly performs the cleaning service required by a covered federal service contract. If the worker is an FLSA- or SCA-covered employee and no listed exclusion applies, the worker is in the core group eligible for the Executive Order minimum. The 20-percent supporting-work threshold is not the reason for coverage because the worker is performing the contracted service directly.
Employee providing necessary support
An FLSA-covered employee performs administrative or logistical duties necessary to a covered service contract but does not perform the contract’s main service. The employee’s hours must be examined under the supporting-work rule. If the supporting work is less than 20 percent of the hours in that workweek, the DOL’s stated exclusion can apply. If the employee performs 20 percent or more, the percentage exclusion does not resolve the question; the other coverage and exemption rules still have to be reviewed.
DBA construction worker
A laborer or mechanic performs construction work called for by a covered federal procurement contract. The worker falls within the DBA laborer-and-mechanic category described by the DOL, but the contract’s DBA wage determination or another applicable law may require more than the Executive Order floor.
Employee of a company with mixed business
An employer performs both federal and private work. An employee assigned only to private projects is not covered merely because the employer also holds a federal contract. The specific contract, assignment, duties, and governing wage law must connect the employee to covered work.
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Worker at a federal location
A person works in a building on federal property for a private company. The location alone does not establish coverage. The lease, concession, service arrangement, or other federal-property contract must fit a covered category, and the employee must satisfy the worker and duty tests.
Why contract documents and wage determinations matter
The same job can produce different results under different contracts. Contract clauses identify whether an Executive Order wage requirement applies, while SCA or DBA wage determinations can set occupation-specific requirements. A state or local minimum wage can also exceed the federal-contractor floor. For that reason, a worker should not infer the correct rate from a company-wide policy, a job title, or a general statement that the company is a federal contractor.
The DOL’s general guidance cannot decide an individual case without the contract, its dates and clauses, the employee’s actual duties, weekly hours, and the applicable wage determination. Those documents are the evidence needed to resolve close cases.
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Common mistakes to avoid
- Using $14 as an exact legal rate: the 2026 non-tipped rate is $13.65, while the tipped rate is $9.55.
- Using the old $15 EO 14026 rate: that order was revoked on March 14, 2025, and the DOL says it no longer enforces it.
- Assuming every federal-contractor employee qualifies: coverage is tied to a covered contract, covered duties, and the applicable wage law.
- Applying the 20-percent rule to direct contract work: the threshold concerns certain FLSA-covered supporting work, not a worker directly performing the contract’s required service.
- Treating job titles as exemptions: FLSA exemption requirements and certificate conditions must actually be met.
- Ignoring higher requirements: a contract wage determination or state, local, or other federal law can require more than the Executive Order minimum.
What a worker or contractor should check first
For a practical coverage review, gather the contract number and clauses, the award or renewal information, the wage determination, the employee’s job description, time records showing the workweek’s duties, and any FLSA certificate or exemption documentation. Then compare the facts against the six decision points: contract category, current Executive Order framework, governing wage law, direct versus supporting work, exemption status, and any higher wage requirement.
That approach answers the real question—whether this worker is entitled to a particular wage on this contract—without treating “federal contractor” as a sufficient legal category.
Frequently Asked Questions
Is the federal contractor minimum wage really $14 in 2026?
No. The DOL’s Executive Order 13658 update sets $13.65 per hour for covered non-tipped workers and $9.55 for covered tipped workers beginning May 11, 2026. A higher contract, state, local, or other federal requirement can apply.
Does every employee of a federal contractor receive the wage?
No. The contract must be covered, the worker must perform work on or in connection with it, and the worker’s wages generally must be governed by the FLSA, SCA, or DBA. Listed exemptions and the supporting-work test can exclude some employees.
Does the old $15 federal-contractor rate still apply?
The DOL says Executive Order 14026 was revoked on March 14, 2025, and it no longer enforces that order or 29 CFR part 23. Current analysis should use the applicable Executive Order 13658 rules and contract requirements.
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