The Labor Department set the minimum wage for some federal contractors to $13.65 per hour, after President Donald Trump canceled a Biden-era executive order that had set it at $15 per hour.
The new wage rate applies to contracts awarded between January 2015 and January 2022 and will go into effect in May, according to the notice, which is scheduled to be published in the Federal Register Monday. The DOL set the wage for tipped workers under government contracts at $9.55 per hour.
The update comes almost a year after the DOL said it would no longer enforce the Biden-era minimum wage, which had risen to over $17 per hour by 2025.
Trump’s move to cancel the contractor pay raise, which started to apply to new or renewed federal contracts in 2022, comes after some businesses and several Republican-led states sued over the executive order with mixed success. The Supreme Court last year declined to take up the issue.
(Updates with further information from the notice in second paragraph.)
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