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DOL Finalizes Increase to Minimum Wage for Federal Contractors

Beginning Jan. 30, 2022

The U.S. Department of Labor (DOL) announced a final rule that implements Executive Order 14026 to increase the hourly minimum wage for employees on federal contracts beginning Jan. 30, 2022. President Biden signed the executive order on April 27, 2021.

The rule applies in all 50 states, the District of Columbia, and specified U.S. territories, and does the following:

  • Increases the hourly minimum wage for workers performing work on or in connection with covered federal contracts to $15 beginning Jan. 30, 2022. 
  • Continues to index the federal contract minimum wage in future years to inflation.
  • Ensures a $15 minimum wage for workers with disabilities performing work on or in connection with covered contracts.

Executive Order 14026 applies to new contracts, and renewals and extensions of existing contracts, beginning Jan. 30, 2022.  

For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382 or Jordan Howard at Jordan.howard@agc.org or 703-837-5368.

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