Minimum Wage Required by Federal Contractors Increases for 2024 - State and Federal Communications

January 8, 2024  •  

Minimum Wage Required by Federal Contractors Increases for 2024

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For 2024, the minimum wage required to be paid by US Federal Contractors under Executive Order 14026 increases to $17.20 an hour.

Starting on January 30, 2022, all federal agencies were required to incorporate a $15 minimum wage in new contract solicitations pursuant to an executive order signed by President Joseph R. Biden on April 27, 2021.

The order requires federal contractors to pay a minimum wage for employees working on or in connection with a federal government contract.

Beginning January 1, 2024, and for each subsequent year, tipped workers must now receive 100% of the wage received by non-tipped workers, currently $17.20 an hour, eliminating the difference between the type of workers.

This applies to tipped employees performing work on or in connection with contracts covered by Executive Order 14026.

Contractors and subcontractors must certify they meet this condition requiring the minimum wage.

This certification is a condition of payment to the contractors from the government.

The order does not apply to grants; contracts, contract-like instruments, or certain specific type of agreements with Indian Tribes.

If a state or municipality has a higher minimum wage, the Executive Order does not excuse noncompliance with the laws requiring the higher wage.

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