Trump Revokes Biden’s Federal Contractor Minimum Wage

March 19, 2025

 

What's New

A new executive order from President Trump on March 14 revoked the increase to the federal contractor minimum wage implemented by the Biden Administration. Trump’s order, entitled “Additional Rescissions Of Harmful Executive Orders And Actions,” revokes Biden’s E.O. 14026, which increased the minimum wage for covered federal contractors to $15 an hour beginning in 2022 with annual adjustments for inflation. The federal contractor minimum wage had climbed to $17.75.

The new executive order also revokes President Biden’s Presidential Memorandum entitled Advancing Worker Empowerment, Rights, and High Labor Standards Globally) and his E.O. 14119 (Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums).

Trump’s new executive order follows several lawsuits involving the federal contractor minimum wage. The U.S. Courts of Appeals for the Fifth and Tenth Circuits upheld Biden’s federal contractor minimum wage, while the Ninth Circuit concluded that Biden exceeded his authority in issuing it.

What It Means

Covered contractors should continue to pay their employees prevailing wage rates under the Davis Bacon Act and Service Contract Act. For employees not covered by those laws, contractors should review their contracts to see if they must comply with E.O. 13658, issued by President Obama in 2014, which established a minimum wage for contractor and subcontractor employees working on specified types of federal contracts that currently is set at $13.30.

What You Should Do

CWC members can discuss this issue with a CWC staff member through MemberAssist at [email protected] or at a Conversation Corner.





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