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The U.S. Department of Labor has announced a reported 2027 minimum wage of $14.05 an hour for certain workers on older federal contracts covered by Executive Order 13658 (EO 13658). That is an increase from the $13.65 rate currently in effect for 2026, but it is not a new minimum for every federal contractor. Construction Dive reported on October 8, 2026 that the new rates take effect 90 days after publication of the notice in the Federal Register; check the notice for the confirmed effective date.
What are the reported 2027 rates?
Construction Dive reported that a U.S. Department of Labor notice sets the next EO 13658 rates at $14.05 per hour for non-tipped workers and $9.85 per hour in cash wages for tipped workers. The report describes these as announced future rates, not the rates in force throughout 2026.
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| Worker category | Rate in effect May 11–December 31, 2026 | Reported next rate |
|---|---|---|
| Non-tipped workers | $13.65 per hour (DOL) | $14.05 per hour (reported by Construction Dive, October 8, 2026) |
| Tipped workers | $9.55 per hour cash wage; tips must bring total pay to at least $13.65 (DOL poster) | $9.85 per hour cash wage (reported by Construction Dive, October 8, 2026); verify the final notice for the applicable tip top-up terms |
The reported timing is 90 days after the notice’s Federal Register publication. Because the publication and effective dates should be confirmed in the notice, no calendar effective date is stated here. Construction Dive’s report is the source for the announced $14.05 and $9.85 figures and the 90-day timing; DOL’s EO 13658 annual update gives the 2026 rates.
Which federal contractors and workers are covered?
The adjustment applies to the residual group of contracts covered by EO 13658, not to federal contractors as a whole. DOL describes the order as principally covering certain contracts subject to the Davis-Bacon Act or Service Contract Act that were entered into from January 1, 2015 through January 29, 2022 and were not renewed or extended on or after January 30, 2022. Construction Dive reports that the 2027 notice applies to this legacy-contract category.
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EO 13658 also covers specified concessions and certain services provided in connection with federal property or lands. Seasonal recreational services are excluded under other executive orders. Whether a worker is entitled to the rate depends on the specific work and contract, not simply on whether their employer does business with the federal government. Check the contract’s wage determination and DOL materials; DOL’s EO 13658 page explains the order’s scope.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened to the $15 federal contractor minimum?
The former $15 minimum was associated with Executive Order 14026, not the continuing EO 13658 schedule. DOL says President Trump revoked EO 14026 on March 14, 2025, and that the department is no longer enforcing that order or its implementing regulation. DOL also says EO 13658 remains applicable to its residual legacy-contract category. The reported $14.05 rate therefore reflects the next adjustment under that continuing order; it is not a direct reduction from $15 for every federal contract.
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DOL states: “The Department of Labor is no longer enforcing Executive Order 14026 or the implementing rule (29 CFR part 23).” See the department’s EO 13658 annual update and EO 13658 frequently asked questions for its explanation of the revocation and enforcement position.
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How should a worker or contractor check the applicable rate?
- Identify the contract and the work being performed, including whether the contract is subject to the Davis-Bacon Act, Service Contract Act, or another covered category.
- Check the contract’s wage determination and its dates, including whether it was renewed or extended on or after January 30, 2022. Those details help distinguish the EO 13658 legacy-contract category from other contracts.
- Compare the applicable contract terms with DOL’s EO 13658 materials and the Federal Register notice for the announced adjustment. Use the notice to confirm its publication date, effective date, and final tipped-worker terms.
- For a worker-specific question, consult DOL’s EO 13658 information and its official worker poster, or contact the Wage and Hour Division.
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