FAR 22.1002-5—Executive Orders 13658 and 14026.
Plain-English Summary
FAR 22.1002-5 explains how the federal contractor minimum wage rules under Executive Order (E.O.) 13658 and Executive Order (E.O.) 14026 interact, including the historical E.O. 13658 rate, its annual increases through January 1, 2022, and the superseding effect of E.O. 14026 as of January 30, 2022 to the extent the two orders conflict. It identifies the current E.O. 14026 minimum wage rate of $15.00 per hour and notes that this rate is adjusted annually by the Secretary of Labor. The section also points readers to subpart 22.19 for the implementing requirements and to clause 52.222-55, Minimum Wages for Contractor Workers under Executive Order 14026, which requires payment of the E.O. 14026 minimum wage when it is higher than other applicable minimum wage rates, including statutory wage determination amounts under subpart 22.10. In practice, this section tells contracting officers and contractors which wage floor controls when multiple wage requirements may apply, and it helps prevent underpayment by establishing a hierarchy that favors the higher applicable minimum wage. It is important because contractor payroll compliance depends on applying the correct wage rate for covered workers and updating rates when annual adjustments occur.
Key Rules
E.O. 13658 historical rate
E.O. 13658 originally set a minimum wage of $10.10 per hour for certain workers, and that rate increased annually through January 1, 2022, reaching $11.25 per hour. This is background information for understanding the transition to the newer executive order.
E.O. 14026 supersedes conflicting rules
As of January 30, 2022, E.O. 13658 is superseded by E.O. 14026 to the extent the two are inconsistent. In practice, contractors must follow E.O. 14026 where it applies and where it provides the controlling wage requirement.
Current E.O. 14026 minimum wage
E.O. 14026 establishes a minimum wage of $15.00 per hour for certain contractor workers. This is the baseline rate referenced by the FAR section, subject to future annual adjustments by the Secretary of Labor.
Annual wage adjustments apply
The E.O. 14026 wage rate is not fixed permanently; it is subject to annual increases determined by the Secretary of Labor. Contractors and contracting officers must use the current published rate, not just the original $15.00 amount.
Higher wage controls
The clause at 52.222-55 requires payment of the E.O. 14026 minimum wage if it is higher than other applicable minimum wage rates, including the subpart 22.10 statutory wage determination amount. This means the contractor must pay the highest applicable minimum wage for covered workers.
See implementing subpart
This section directs users to subpart 22.19 for the detailed implementation rules. The FAR text here is a cross-reference and summary, not the full operational guidance.
Responsibilities
Contracting Officer
Identify when the E.O. 14026 wage requirements apply to the acquisition, include the proper clause, and ensure the contract reflects the current applicable minimum wage rate. The contracting officer must also recognize when the E.O. 14026 rate overrides a lower wage determination or other minimum wage requirement.
Contractor
Pay covered workers at least the applicable minimum wage required by E.O. 14026 or any higher applicable wage rate, and update payroll practices when annual adjustments take effect. The contractor must monitor the clause and applicable wage determinations to avoid paying below the required floor.
Agency
Implement and administer the executive order wage policy through acquisition planning, clause insertion, and oversight of compliance. The agency must ensure its contracting personnel apply the correct wage rule and current rate.
Secretary of Labor
Determine the annual increases to the E.O. 14026 minimum wage rate. Those updated rates drive contractor compliance and must be used when calculating the wage floor for covered workers.
Practical Implications
Contractors should not assume the $15.00 rate is permanent; they must check for annual updates and apply the current rate.
When multiple wage requirements apply, the contractor must pay the highest applicable minimum wage, which can be the E.O. 14026 rate even if a wage determination under subpart 22.10 is lower.
A common compliance mistake is relying on outdated E.O. 13658 rates or failing to recognize that E.O. 14026 controls where inconsistent.
Contracting officers should verify that the correct clause is included and that wage requirements are aligned with the current executive order rate.
Payroll systems and subcontractor oversight need to be updated promptly when the Secretary of Labor issues a new annual minimum wage amount.
Official Regulatory Text
Executive Order (E.O.) 13658 established minimum wages for certain workers at $10.10 per hour. The E.O. 13658 rate has increased each year since 2015, rising to $11.25 on January 1, 2022. As of January 30, 2022, E.O. 13658 is superseded by E.O. 14026 to the extent that it is inconsistent with E.O. 14026; the minimum wage rate for certain workers is increased to $15.00 per hour. The wage rate is subject to annual increases by an amount determined by the Secretary of Labor. See subpart 22.19 . The clause at 52.222-55 , Minimum Wages for Contractor Workers under Executive Order 14026, requires the E.O. 14026 minimum wage rate to be paid if it is higher than other minimum wage rates, such as the subpart 22.10 statutory wage determination amount.