DOL Publishes Final Rule: Executive Order 14026 Implements Federal Contractors $15 Minimum Wage - Baker Donelson
DOL final rule raises minimum wage to $15/hour for federal contractors under Executive Order 14026, effective January 30, 2022, with phased increases.
Aforeworn detected this change in the Government Contracting (SAM/FAR) space on July 8, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. All federal contractors and subcontractors covered by the Fair Labor Standards Act, including those with contracts under the Service Contract Act, Davis-Bacon Act, and concessions contracts. should confirm how it applies to their specific situation before acting. There is a time constraint attached: January 30, 2022 for new contracts; existing contracts must comply upon renewal or extension.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Government Contracting (SAM/FAR) continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
Minimum wage for covered federal contract workers increased from $10.95 to $15.00 per hour, with annual adjustments starting January 1, 2023.
Who it affects
All federal contractors and subcontractors covered by the Fair Labor Standards Act, including those with contracts under the Service Contract Act, Davis-Bacon Act, and concessions contracts.
What you must do
Update wage determinations, revise contracts, adjust payroll systems, and ensure compliance with new minimum wage for all covered workers.
Deadline
January 30, 2022 for new contracts; existing contracts must comply upon renewal or extension.
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