Federal Contractor Minimum Wage Rescission

Schwabe, Williamson & Wyatt PC
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Schwabe, Williamson & Wyatt PC

On March 14, President Trump issued a new Executive Order titled “Additional Rescissions of Harmful Executive Orders and Actions.” In this order, the President rescinded eighteen prior Executive Orders or presidential directives, including EO 14026 of April 27, 2021, Increasing the Minimum Wage for Federal Contractors.

EO 14026 implemented in 29 C.F.R. Part 23, which set a minimum wage of $17.75 per hour for federal contractors in 2025. Since that Executive Order has been rescinded, we can expect the FAR Council and federal agencies also to revoke 29 C.F.R. Part 23 and to amend existing and new federal contracts to eliminate the contractual obligation to comply with the canceled federal contractor minimum wage requirement.

As we move forward from EO 14026, it is critical for federal contractors and stakeholders involved in federal projects to remain informed about the implications of this change. Keeping abreast of updates from the FAR Council and relevant federal agencies will be vital for understanding how current and future contracts may be affected.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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