FAR 22.403-4—Executive Orders 13658 and 14026.
Plain-English Summary
FAR 22.403-4 explains how the federal contractor minimum wage rules under Executive Order (E.O.) 13658 and E.O. 14026 work, how the older order was superseded, and how the applicable minimum wage is determined for covered workers. It identifies the historical E.O. 13658 rate of $10.10 per hour, notes the annual increases that raised that rate to $11.25 on January 1, 2022, and explains that E.O. 13658 is superseded by E.O. 14026 to the extent the two are inconsistent as of January 30, 2022. The section also states that E.O. 14026 established a $15.00 per hour minimum wage for certain workers, with future annual adjustments set by the Secretary of Labor, and points readers to subpart 22.19 for the broader implementing rules. In practice, this section matters because contractors must pay the highest applicable minimum wage to covered workers, and the clause at 52.222-55 requires the E.O. 14026 rate when it exceeds other minimum wage requirements, including statutory wage determination amounts under subpart 22.4. For contracting officers and contractors, the key issue is not just knowing the base rate, but correctly identifying which wage floor applies on a given contract and ensuring payroll, pricing, and compliance systems are updated when rates change.
Key Rules
E.O. 13658 historical rate
E.O. 13658 originally set a minimum wage of $10.10 per hour for certain covered workers. FAR notes that this rate increased annually and reached $11.25 on January 1, 2022.
E.O. 14026 supersedes prior rule
As of January 30, 2022, E.O. 13658 is superseded by E.O. 14026 to the extent the two are inconsistent. That means the newer order controls whenever its requirements differ from the older order.
E.O. 14026 minimum wage
E.O. 14026 establishes a $15.00 per hour minimum wage for certain workers covered by the order. This rate is also subject to annual increases determined by the Secretary of Labor.
Use subpart 22.19
FAR directs readers to subpart 22.19 for the implementing requirements for the executive order minimum wage rules. The section is part of the broader regulatory framework governing coverage, clauses, and administration.
Pay the highest applicable rate
The clause at 52.222-55 requires the E.O. 14026 minimum wage to be paid when it is higher than other minimum wage rates, including statutory wage determination amounts under subpart 22.4. Contractors must therefore compare all applicable wage floors and apply the highest one.
Responsibilities
Contracting Officer
Identify when the contract is subject to the executive order minimum wage requirements, include the proper clause, and ensure the solicitation and contract reflect the applicable wage floor and any updates required by law or regulation.
Contractor
Pay covered workers at least the applicable minimum wage, monitor annual rate changes, compare E.O. 14026 rates against other wage requirements, and update payroll and subcontractor compliance practices accordingly.
Agency
Implement the executive order wage policy through procurement actions, support contracting officers with correct clause usage and wage determinations, and ensure contract administration reflects current minimum wage requirements.
Secretary of Labor
Determine the annual increases to the E.O. 14026 minimum wage rate and provide the wage adjustments that agencies and contractors must follow.
Practical Implications
Contractors should not assume the old E.O. 13658 rate still applies; the controlling rate may be the E.O. 14026 rate or a higher wage determination amount.
Payroll systems must be updated whenever the Secretary of Labor issues an annual increase, or contractors risk underpaying covered workers.
When multiple wage requirements apply, the contractor must pay the highest applicable rate, which can create compliance issues if the contract also includes subpart 22.4 wage determinations.
Contracting officers should verify the correct clause and wage floor are included at award and when modifications or option exercises occur.
A common pitfall is overlooking coverage details and assuming all labor categories are subject to the same minimum wage rule; contractors should confirm which workers are covered under the applicable subpart 22.19 framework.
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 22.4 statutory wage determination amount.