Pay the highest wage requirement that applies to the worker and the work. A federal contractor rate does not cancel a higher state or local minimum wage, and a contract may also require a higher prevailing wage under the Service Contract Act (SCA) or Davis-Bacon Act (DBA). As of October 12, 2026, the former $15-per-hour floor under Executive Order 14026 is no longer being enforced by the U.S. Department of Labor (DOL). For some contracts that remain covered by Executive Order 13658, DOL lists a rate of $13.65 an hour for non-tipped workers and a $9.55 cash wage for tipped workers, effective May 11, 2026. Those contractor rates are not universal: establish coverage, location, job classification and applicable contract terms before setting an individual worker’s pay.
Which rate applies? Start with the worker, contract and work location
There is no single wage rate for everyone employed by a federal contractor. The answer depends on whether a particular worker and contract are covered by a federal contractor wage requirement, which state and local laws apply where the work is done, and whether a contract has a prevailing-wage requirement for the worker’s job classification.
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Compare those obligations and pay the highest rate that applies to the worker. DOL’s Consolidated Minimum Wage Table, revised July 1, 2026, states that employers must pay the highest applicable minimum wage rate, whether federal, state or local. DOL’s guidance also makes clear that a contractor’s obligation under an executive order does not excuse noncompliance with another applicable prevailing-wage law or with a state or municipal minimum wage higher than the executive-order rate.
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For example, if a contract is covered by EO 13658 but the worker’s applicable city minimum is higher, the city rate is not displaced by the contractor rate. If a prevailing-wage determination also covers that worker’s classification, include that rate in the comparison as well. This is a method, not a set of assumed amounts: without the worksite, duties, contract and relevant period, there is no reliable way to name one controlling dollar figure.
Current federal contractor rates—and what they do not mean
EO 14026: the former $15 rate is not currently enforced by DOL
Do not treat the former $15-an-hour floor under Executive Order 14026 (EO 14026) as the current generally enforced federal contractor minimum. DOL says Executive Order 14236 revoked EO 14026 on March 14, 2025, and that DOL is no longer enforcing EO 14026 or its implementing rule. DOL’s EO 13658 fact sheet provides the current notice and background.
This is a statement about DOL enforcement of EO 14026. It does not establish that every possible contractual term or separate wage law has disappeared. For a specific contract, review its actual terms and history and check whether another federal, state or local requirement applies. Do not substitute the old EO 14026 figure for that contract-specific check.
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EO 13658: a rate for certain covered contracts
EO 13658 remains relevant to certain covered federal service and construction contracts and workers performing work “on” or “in connection with” covered contracts. That description is not a blanket rule for every employee of every federal contractor. You need to establish that the particular contract and work are covered before applying the EO 13658 rate.
DOL’s 2026 annual update lists an hourly minimum of $13.65 for covered non-tipped workers, effective May 11, 2026. DOL’s worker-rights poster, revised September 2026, gives the same rate. The figure is the EO 13658 rate for covered workers, not a guaranteed ceiling on the employer’s obligation: a higher applicable wage requirement may control.
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Tipped workers: cash wage and tips have to be considered together
For a tipped worker covered by EO 13658, DOL lists a $9.55-per-hour cash wage effective May 11, 2026. The September 2026 poster says this cash wage applies provided the employee receives enough tips to reach $13.65 for all relevant covered hours from May 11 through December 31, 2026. The cash-wage figure is not permission to leave a covered worker below the stated total when tips are insufficient.
For the particular pay period and job, check the current poster and the rules that apply to tips; do not assume that the EO 13658 cash wage is the only relevant tipped-pay rule. State and local requirements may affect the result, and the worker’s coverage must still be established. DOL’s poster is a current rate summary, not a substitute for checking the contract and applicable law.
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Different rules can apply at the same time. The contractor minimum is one possible floor; a state or municipal minimum may set a higher floor, while an SCA or DBA wage determination may prescribe a rate for covered work and a particular job classification. The practical task is to identify every applicable requirement, rather than choosing whichever source seems most familiar.
| Requirement | What to establish | Rate information available here |
|---|---|---|
| EO 13658 | Whether the contract and worker’s work are covered, including the relevant contract terms and history. | $13.65 per hour for covered non-tipped workers and a $9.55 cash wage for covered tipped workers, effective May 11, 2026; tipped cash-wage conditions apply through December 31, 2026. See DOL’s annual update and poster. |
| State minimum wage | Which state law covers the work, its effective date, and any relevant conditions or exceptions. | Not stated as a single figure: the applicable rate depends on the work location and law. Use DOL’s Consolidated Minimum Wage Table as a starting point, then verify the state rule. |
| Local minimum wage | Whether a city, county or other local ordinance covers the worker and work location. | Not stated as a single figure: local rates vary by jurisdiction and coverage. Check DOL’s Consolidated Minimum Wage Table and the local rule. |
| SCA or DBA prevailing wage | Whether the contract and work are covered and which wage determination and classification apply. | Not stated as one figure: the applicable contract wage determination supplies the relevant classification and rate. DOL says the contractor minimum does not excuse compliance with applicable SCA or DBA obligations; see its EO 13658 FAQ. |
The table’s blank single figure for state, local, SCA and DBA rates is deliberate: those amounts cannot be determined without the jurisdiction and contract information. The federal contractor rates above also apply only after coverage is established. A DOL jurisdictional table is a starting point, not a complete legal determination of a worker’s rate, because coverage conditions and exceptions may matter.
State or local minimum wage higher than the contractor floor
If a state or local minimum wage applies to the worker and is higher than the applicable contractor minimum, the higher minimum applies. DOL’s EO 13658 FAQ expressly says a contractor’s obligation to pay the executive-order minimum does not excuse compliance with an applicable state or municipal minimum wage above it. Do not assume that performing a federal contract creates an exemption from the local rule.
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To make this comparison, use the place where the work is performed, not merely the contractor’s headquarters or the address on a paycheck. If a worker performs covered duties at multiple locations, identify the rules applicable to each work location and the time spent there. Then confirm that the worker, employer and work are within each jurisdiction’s coverage; an address alone does not resolve exemptions or other statutory conditions.
SCA and DBA rates may make a simple minimum-wage comparison incomplete
An SCA or DBA wage determination can require a prevailing wage for covered contract work and a particular classification. DOL says the obligation to pay an executive-order minimum does not excuse noncompliance with applicable federal or state prevailing-wage law, including the SCA and DBA. If a prevailing-wage requirement applicable to the worker is higher, the worker must receive that higher wage. The relevant amount depends on the contract’s wage determination and the worker’s classification, so do not infer it from the general EO 13658 hourly rate.
That means a minimum-wage check and a prevailing-wage check answer related but distinct questions. A general minimum is not proof that a classification-specific wage determination has been satisfied. Match the worker’s actual duties to the applicable classification and contract determination, and compare the resulting obligation with the other wage requirements that cover the work.
How to determine a particular worker’s rate
Use a repeatable review for each affected contract and job. Keep the worker’s location and classification tied to the rate decision: two workers employed by the same contractor may have different applicable rates if they perform different work, work in different places or are assigned to different contracts.
- Identify the work and the worker. Record the work location, duties, job classification, whether the worker is tipped, and whether the work is performed “on” or “in connection with” a federal contract. Do not use the contractor’s headquarters as a substitute for where the work is performed.
- Check whether EO 13658 covers the contract and work. Review the contract terms and relevant history, including its date and whether it was renewed or extended. DOL’s fact sheet describes covered work and provides background. Do not infer coverage merely from the employer’s status as a federal contractor.
- Use the EO 13658 rate only if coverage is established. For covered non-tipped work, check the current DOL rate and its effective date. For covered tipped work, verify the cash-wage amount and the tip condition for the relevant period using the annual update and poster.
- Check state and local requirements for the work location. Use DOL’s Consolidated Minimum Wage Table to identify jurisdictional rates, then verify the applicable law, effective date, coverage conditions and exceptions for the worker. If the work spans more than one locality, assess the applicable requirements for the locations where it is performed rather than assuming one rate covers every site.
- Review the contract’s wage determination. Determine whether the work is subject to the SCA or DBA and identify the correct job classification and wage determination. Compare that obligation with other applicable rates; do not assume that satisfying a general minimum wage also satisfies a prevailing-wage requirement.
- Set and document the rate for the relevant period. Use the highest applicable requirement for the worker and period under review. Record the sources checked, contract coverage decision, jurisdiction, classification, effective dates and any tipped-worker calculation. Recheck when a contract is renewed or extended, a rate changes, a worker’s duties or worksite changes, or a new wage determination applies.
Apply the comparison to the period in which the work was performed. A published rate has an effective date, and a contract renewal, extension or updated wage determination may alter which rules apply. Avoid carrying forward a rate simply because it was correct in an earlier payroll period. For tipped workers, retain the information used to check whether tips reached the required total for the covered hours and period; the cash-wage number alone does not document that condition.
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Common mistakes that produce the wrong rate
- Using the former EO 14026 $15 figure as the current DOL-enforced floor. DOL says EO 14026 was revoked on March 14, 2025, and is no longer enforcing it or its implementing rule. Check current requirements instead of carrying the old rate forward.
- Applying EO 13658 to every employee of a contractor. Coverage is contract- and work-specific. Determine whether the worker and work fall within the covered contract; employer identity alone does not answer that question.
- Comparing only federal and state minimums. An applicable local ordinance or SCA/DBA wage determination may also matter. Include all requirements that cover the worker before deciding which rate controls.
- Using a rate for the wrong place or effective date. State and local rates can differ across jurisdictions and change over time. Match the rate to where the work is performed and the date the work occurred, then verify applicable exceptions.
- Treating the tipped cash wage as the full wage obligation. The EO 13658 $9.55 cash wage is tied to a tip condition: the poster says tips must bring the worker to $13.65 for all relevant hours through December 31, 2026. Check actual tip receipts and all other applicable tipped-pay rules.
- Assuming the minimum wage settles a prevailing-wage question. A covered SCA or DBA contract may have a classification-specific wage determination. Locate it and apply the requirement to the correct work rather than treating the general contractor minimum as a substitute.
- Assuming an online rate table decides coverage. The DOL consolidated table helps locate jurisdictional rates, but it does not resolve every worker’s eligibility, exemption, contract coverage or wage determination. Verify those facts separately.
What the current figures mean for payroll decisions
The $13.65 and $9.55 figures are current EO 13658 figures identified by DOL for specified covered workers as of the dates stated above. They should not be inserted into payroll as universal contractor rates without a coverage check. Nor should an employer take the higher rate in one jurisdiction or contract and apply it to every worker without determining whether that requirement actually covers each person.
For a concrete decision, prepare a worker-specific comparison: list each applicable federal contractor requirement, the state minimum, any local minimum and the applicable SCA or DBA rate. Put the effective date and scope beside each amount, then exclude requirements that do not apply and select the highest applicable rate. For tipped work, record the cash wage and whether the tip condition is met. If contract language, classification or local coverage is uncertain, resolve that question against the actual contract and governing rule before relying on a general rate table.
DOL’s published guidance is useful for identifying its current federal contractor rates and the relationship between those rates and other wage laws. An individual rate determination still turns on facts that general guidance cannot supply: the contract, the worker’s duties and classification, the location, the relevant dates and any applicable exceptions. Keep those details with the payroll decision so that a later rate change or contract renewal can be assessed against the right baseline.
Frequently Asked Questions
Do I have to pay the higher state or local minimum wage on a federal contract?
Yes, when that state or local minimum wage applies to the worker and is higher than the applicable contractor rate. DOL says the executive-order minimum does not excuse compliance with a higher applicable state or municipal minimum. Check the law for the actual work location and any coverage conditions or exceptions.
Is the former $15 EO 14026 rate still the current federal contractor minimum?
No. DOL says EO 14236 revoked EO 14026 on March 14, 2025, and that it is no longer enforcing EO 14026 or its implementing rule. Do not treat the former $15 figure as the current generally enforced federal contractor floor; check the contract and other applicable wage laws.
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Does the $13.65 EO 13658 rate apply to every federal contractor employee?
No. It applies to workers and work covered by EO 13658, not everyone employed by a company with federal contracts. Confirm the contract, relevant terms and history, and whether the worker performs covered work before using the rate.
Can a covered tipped worker be paid the $9.55 cash wage?
DOL lists a $9.55 cash wage for covered tipped workers beginning May 11, 2026, provided tips bring the worker to $13.65 for all relevant covered hours from May 11 through December 31, 2026. Check the current poster, actual tips and any other applicable tipped-pay rules; the cash wage alone does not establish compliance.
How do SCA and DBA wages affect the comparison?
If the contract and worker are subject to an SCA or DBA wage determination, identify the correct classification and rate. DOL says the executive-order contractor minimum does not excuse compliance with applicable prevailing-wage laws, including the SCA and DBA. Include that requirement in the comparison rather than assuming a general minimum wage is enough.
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Identify the work location, duties and classification, contract coverage and relevant dates. Check DOL’s consolidated table for jurisdictional rates, verify the state and local laws, and review the contract’s SCA or DBA wage determination if applicable. The table is a starting point; it does not determine coverage, exemptions or the correct contract classification.
The Bottom Line
Bottom line: There is no universal federal-contractor rate. Confirm which requirements cover the worker, worksite, job and pay period; then pay the highest applicable rate, including any higher state or local minimum or SCA/DBA prevailing wage. As of October 12, 2026, DOL lists $13.65 for covered non-tipped EO 13658 workers and a conditional $9.55 tipped cash wage. EO 14026’s former $15 rate is no longer enforced by DOL.
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