Federal Minimum Wage for Contractors Increases for 2025

January 20, 2025

State Update Overview

Date Updated January 2025
Labor Law Update The Federal Department of Labor Minimum Wage for Contractors Law
What Changed Increased minimum wage rate for federal contractors
Mandatory or Non-Mandatory Mandatory
Updated Poster Federal Contractors Labor Law Poster

Effective January 1, 2025, the U.S. Department of Labor published a revised Worker Rights under Executive Order 14026 establishing an increase to the federal minimum wage for contractors. 

Federal Contractors Minimum Wage Law Update

Wage and Hour Exemptions

Employees may be exempt from wage and hour laws based on criteria associated with their salary, actual duties, and skills. Exempt employees neither receive overtime pay nor qualify for minimum wage. Federal labor law defines these exemptions based on Executive, Administrative, or Professional status. Learn more here.

Federal Labor Law Poster Update

All federal contractors must display the new “Worker Rights under Executive Order 14026” poster along with other federal-mandated posting requirements where they are sufficiently accessible and viewable to all workers. This change has been reflected in our Federal Contractors Labor Law Poster and requires an immediate mandatory update. Failure to meet compliance requirements and display the updated poster could result in fines.

Order the Federal Contractors Labor Law Poster  to ensure full compliance with this new poster and all federal workplace poster mandates.