Federal contractors will see two posting updates in January 2022
Posted November 1, 2021
Change 1: Minimum wage under Executive Order 13658
Since 2015, contractors covered by Executive Order 13658 have been required to pay employees the federal contractor minimum wage. The rate is $10.95 per hour for 2021.
This rate is adjusted annually for inflation and increases to $11.25 per hour on January 1, 2022.
Employers covered by the executive order need to display updated posters showing the new rate for 2022.
Change 2: Minimum wage under Executive Order 14026
A new executive order relating to the minimum wage for federal contractors was signed by President Biden on April 27, 2021. Under Executive Order 14026, covered federal contractors will need to pay employees a minimum wage of $15 per hour.
This new rate takes effect on January 30, 2022. It only applies to contracts entered into or renewed after that date.
When a business enters into a federal contract that falls under the new executive order, the contractor will need to display a poster showing the $15 per hour rate.
Why two minimum wages for federal contractors?
Because Executive Order 14026 only applies to contracts signed or renewed after January 30, 2022, there will be an overlap period where some contracts are covered by Executive Order 13658 and some are covered by Executive Order 14026.
Federal contractors will need to comply with the executive order that relates to their contract. Older contracts will remain subject to the minimum wage requirements of Executive Order 13658, while newer ones will fall under Executive Order 14026.
The Department of Labor expects all covered contracts to be subject to the Executive Order 14026 minimum wage in the near future. The DOL will continue to announce annual minimum wage updates to the Executive Order 13658 minimum wage until all contracts are converted by this new requirement.
What do I need to post?
Employers should post the federal contractor minimum wage poster called for in their contract:
- If a covered contract was signed or renewed before January 30, 2022, the updated Executive Order 13658 poster should be displayed.
- When a covered contract is signed or renewed on or after January 30, 2022, the Executive Order 14026 poster will be needed.