For 2025, the minimum wage required to be paid by US Federal Contractors under Executive Order 14026 increases to $17.75 an hour. Beginning 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. Since January 1, 2024, tipped workers must also receive 100% of the wage received by non-tipped workers, eliminating the difference between the type of workers. Contractors covered by Executive Order 14026 must ensure that workers receive no less than the minimum wage rates in effect during each calendar year in which a covered contract is performed. Based on an order issued by the U.S. District Court for the Southern District of Texas on September 26, 2023, the minimum wage requirements of the final rule implementing Executive Order 14026 are not currently being enforced as to contracts or subcontracts to which the states of Texas, Louisiana, or Mississippi (including their agencies) are a party.