On January 13, 2022, the U.S. Department of Labor (DOL) published Field Assistance Bulletin (FAB) 2022-1 to help federal contractors understand and implement a $15 minimum wage rate for their employees by January 30, 2022, as required by Executive Order (EO) 14026.
Existing law requires federal contractors to pay at least the established minimum wage rate to workers performing work on or in connection with certain covered federal contracts for construction or services. EO 13658 authorized the DOL to adjust the applicable minimum wage rate annually based on inflation. The January 1, 2022, EO 13658 minimum wage rate is $11.25 ($7.90 for tipped workers).
EO 14026 raises the hourly minimum wage for workers performing work on or in connection with certain covered federal contracts for construction or services. EO 14026 establishes an initial minimum wage of $15 ($10.50 for tipped workers) as of January 30, 2022. This rate will also be adjusted annually based on inflation. EO 14026 shares many similarities with EO 13658 but has some key differences relating to coverage and applicability. The DOL has published a final rule to implement the provisions of EO 14026.
Federal contractors can use FAB 2022-1 to learn more about who is covered by EO 14026 and the $15 minimum wage as well as employee notice, recordkeeping and antiretaliation requirements.
April 27, 2021 – President Biden signed EO 14026
November 22, 2021 – DOL published final rule to implement EO 14026
January 13, 2022 – DOL published FAB 2022-1
January 30, 2022 – EO 14026 effective date
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