Pay the highest minimum-wage or prevailing-wage rate that applies to the worker’s job, contract, and work location. A federal contractor minimum does not displace a higher state or local minimum, or a higher applicable wage under the Service Contract Act (SCA) or Davis-Bacon Act (DBA). As of October 12, 2026, the former $15-per-hour rate under Executive Order 14026 is not being enforced by the U.S. Department of Labor (DOL). The current DOL rate for certain workers covered by the still-relevant Executive Order 13658 is $13.65 per hour, with a $9.55 cash-wage floor for qualifying tipped workers, effective May 11, 2026.
Those contractor rates are not universal: first verify that the contract and the worker’s duties are covered, then compare every other applicable rate.
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The rule: identify every applicable rate, then use the highest
Federal contractor wage questions are not resolved by choosing between “federal” and “state” rules as if only one can apply. A worker may be covered by a federal contractor minimum, a state or local minimum-wage law, and a federal or state prevailing-wage requirement. The employer must meet the highest rate that applies to that worker and those hours.
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DOL’s Consolidated Minimum Wage Table, revised July 1, 2026, states that employers must pay the highest applicable minimum wage rate, whether federal, state, or local. DOL’s EO 13658 FAQ also explains that paying the executive-order minimum does not excuse noncompliance with another applicable federal or state prevailing-wage law, including the SCA or DBA, or with a law or municipal ordinance that sets a higher minimum.
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| Requirement to check | What it can mean for the worker |
|---|---|
| EO 13658 contractor minimum | If the contract and work are covered, the applicable contractor floor is $13.65 per hour for non-tipped workers as of May 11, 2026. The tipped-worker cash floor is subject to separate conditions. |
| State minimum wage | If a state rate applies to the worker and location and is higher than the contractor floor, pay the state rate or any still-higher applicable rate. |
| Local minimum wage | A city or other local ordinance may establish a higher applicable rate. Verify its coverage rules and effective date for the work location. |
| SCA or DBA prevailing wage | If a wage determination applies to the contract and the worker’s classification, its applicable rate may exceed the minimum-wage floor. Use the higher required wage. |
The table is a comparison framework, not a determination for an individual employee. A rate is relevant only if its coverage rules, effective date, job classification, and any applicable exceptions fit the worker’s circumstances.
What changed: EO 14026’s $15 rate is no longer being enforced
Do not use the former $15-per-hour EO 14026 minimum as the current generally enforced federal contractor floor. DOL says Executive Order 14236 revoked EO 14026 on March 14, 2025, and that the department is no longer enforcing EO 14026 or its implementing rule. The current notice appears in DOL’s EO 13658 fact sheet.
This is important when reading older contractor materials, payroll references, or articles that still describe $15 as the current contractor minimum. The former figure does not replace the current EO 13658 rate for contracts covered by that order, and it does not answer whether a higher state, local, SCA, or DBA rate applies. Check the current DOL materials and the contract’s terms rather than relying on an outdated summary.
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EO 13658 remains relevant for certain covered federal service and construction contracts and workers performing work “on” or “in connection with” those contracts. That description does not mean every employee of a federal contractor is automatically covered. The contract, its history and terms, the work performed, and the worker’s relationship to the covered work must be checked.
DOL’s 2026 annual update and its worker-rights poster, revised September 2026, identify the following EO 13658 rates effective May 11, 2026:
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| Worker category | EO 13658 amount | Qualification |
|---|---|---|
| Covered non-tipped worker | $13.65 per hour | Applies to covered work under EO 13658 from May 11, 2026; a higher applicable state, local, SCA, or DBA rate still controls. |
| Covered tipped worker | $9.55 per hour cash wage | Beginning May 11, 2026, the poster says this cash wage applies provided tips bring the worker to $13.65 for all relevant covered hours through December 31, 2026. Other applicable wage requirements must also be checked. |
The cash wage is not a separate lower minimum that can be applied without conditions. For the stated period, the worker must receive enough tips to reach the specified $13.65 level for all relevant covered hours. If the tips do not bring the worker to that amount, the poster’s condition for using the $9.55 cash wage has not been met. The applicable law and contract terms should be checked before calculating the employer’s obligation.
How to determine a particular worker’s rate
Use this sequence for each worker or group of workers whose contract coverage, job, or work location differs. A single employer may need different answers for workers on different contracts or at different sites.
- Identify the work and contract. Confirm whether the contract is within EO 13658’s coverage and whether the worker performs covered work “on” or “in connection with” it. Do not infer coverage solely from the employer’s status as a federal contractor.
- Review the contract’s terms and history. Check the relevant contract date and whether the contract was renewed or extended. DOL’s published materials distinguish contract groups, so use the contract-specific terms and current agency guidance rather than assuming every contract is treated alike.
- Determine the work location. Identify where the work is performed and which state and local rules apply there. For work at multiple locations, assess the applicable rules for the relevant work and hours rather than treating the employer’s headquarters as the only location that matters.
- Check jurisdiction-specific minimum wages. Use the current DOL Consolidated Minimum Wage Table as a starting point for state and local rates. Then verify the current rule with the relevant jurisdiction, including its effective date, coverage conditions, and exceptions.
- Check for a prevailing-wage determination. Establish whether the contract is subject to the SCA or DBA and find the applicable wage determination and the worker’s classification. Compare that required rate with the contractor and jurisdictional minimums.
- Apply tipped-worker rules if relevant. For a covered tipped worker, verify that the relevant cash-wage and tip conditions are met for the covered hours. Do not assume tips automatically satisfy every wage obligation.
- Compare the applicable figures. Exclude rates that do not cover this contract, worker, location, or period. Among the rates that do apply, pay the highest required rate.
Recheck the result when a worker changes job classification, contract assignment, worksite, or tipped status, and when a contract is renewed or extended or a jurisdiction changes its rate. A previously correct rate can stop being sufficient when one of those facts changes.
How state and local rates interact with the contractor floor
The federal contractor minimum functions as a floor for covered work; it is not a cap on what another applicable law may require. If a state or local minimum wage that covers the worker is higher than the applicable EO 13658 rate, the higher jurisdictional rate applies. If the jurisdictional rate is lower, it does not reduce the federal contractor obligation for covered work.
There is no single nationwide state-or-city comparison that settles every case. Rates can vary by jurisdiction and effective date, and laws may define coverage or exemptions differently. The DOL consolidated table is a useful place to locate jurisdictional rate information, but it is not a substitute for checking whether a particular law covers the worker and work in question.
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For work performed in more than one jurisdiction, avoid assuming that one location’s rate governs all hours. Determine the work location and applicable rule for the hours at issue, then document how the employer reached the rate. If coverage is unclear, the question is not simply which published number is larger; it is which requirements apply to that worker and work.
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Keep the comparison specific to the worker, the covered work, the work location, and the period being paid. Start by recording the EO 13658 figure only if the contract and work qualify. Then identify the state rate and any local ordinance that covers that location and worker. Separately determine whether an SCA or DBA wage determination applies to the contract and the worker’s classification. The result is not an average or a choice among rules: it is the highest rate among the requirements that actually apply.
For example, if a covered non-tipped worker is subject to EO 13658, the $13.65 rate is one figure to compare as of May 11, 2026. A higher state or local minimum that covers the work would supersede that floor; a still-higher applicable prevailing-wage determination could set the required wage above both. If the state or local rate is lower, it does not reduce the EO 13658 obligation. This comparison illustrates the method, not a rate determination for any particular city, contract, or occupation.
Do not compare numbers drawn from different time periods without checking their effective dates. The EO 13658 rates in DOL’s 2026 annual update take effect May 11, 2026. The DOL consolidated table was revised July 1, 2026, and the worker-rights poster was revised September 2026. Jurisdictional rules may have their own effective dates, so the applicable rate should match the work period rather than simply the date someone last set up payroll.
Why SCA and DBA wage determinations can change the answer
Minimum-wage comparisons are not complete until prevailing-wage obligations are checked. Under the SCA and DBA, a covered contract may have a wage determination that specifies rates for worker classifications. DOL’s FAQ makes clear that an EO 13658 obligation does not excuse compliance with applicable SCA or DBA requirements. Where a prevailing-wage rate applies and is higher than the otherwise applicable minimum, the higher rate must be paid.
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Do not compare a prevailing-wage figure to the contractor minimum without first confirming that the contract is subject to the relevant statute and that the worker’s duties fit the wage-determination classification. The specific determination and classification matter; the general minimum-wage figure alone cannot establish the correct prevailing wage for a job.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common errors that lead to the wrong rate
- Using $15 as the current EO 14026 floor. DOL says EO 14026 was revoked on March 14, 2025, and that it is no longer enforcing the order or its implementing rule.
- Assuming every federal contractor employee is covered by EO 13658. Coverage depends on the relevant contract and work, not just the employer’s identity.
- Paying only the contractor minimum. A higher applicable state or local rate, or SCA or DBA prevailing wage, can control.
- Using the tipped cash wage without checking the tip condition. For the stated May 11 through December 31, 2026 period, DOL’s poster conditions the $9.55 cash wage on tips bringing the worker to $13.65 for all relevant hours.
- Using an outdated jurisdictional rate. Rates and effective dates change. Check the current rule for the work location rather than carrying forward a rate from an older payroll setup or reference.
- Treating the DOL rate table as a complete legal determination. The table is a starting point; coverage, exemptions, contract terms, classification, and wage determinations still need review.
What to document and when to seek a determination
For a defensible payroll decision, retain the facts used to establish coverage and rate: the contract and relevant renewal or extension information, the worker’s duties and classification, work location and hours, applicable jurisdictional rate and effective date, any SCA or DBA wage determination, and the calculation used for tipped pay where relevant. If a contract, classification, or local rule is ambiguous, consult the contracting agency or an employment-law professional rather than treating the highest number you can find as automatically applicable.
This is a general explanation, not a legal determination for a specific worker. The individual rate depends on the actual contract, duties, location, dates, and applicable wage determination.
Frequently Asked Questions
Do I have to pay the higher state or local minimum wage?
Yes, if that state or local rate applies to the worker and work location and is higher than the applicable EO 13658 rate. The contractor minimum is not a cap. Check coverage rules, exceptions, and effective dates for the jurisdiction.
Is the federal contractor minimum still $15 an hour?
No. DOL says EO 14236 revoked EO 14026 on March 14, 2025, and that it is no longer enforcing EO 14026 or its implementing rule. For certain contracts still covered by EO 13658, DOL lists $13.65 per hour for non-tipped workers effective May 11, 2026.
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Does the $13.65 EO 13658 rate apply to every federal contractor employee?
No. EO 13658 applies to specified covered contracts and workers performing work on or in connection with them. Confirm the contract’s coverage, relevant terms and history, and the worker’s duties; being employed by a federal contractor alone does not establish coverage.
When can a covered tipped worker be paid $9.55 in cash?
DOL’s September 2026 worker-rights poster states that the $9.55 cash wage applies beginning May 11, 2026, provided tips bring the worker to $13.65 for all relevant covered hours through December 31, 2026. Check the applicable rules and contract terms, as well as any higher wage requirement.
Can an SCA or DBA wage determination require more than the contractor minimum?
Yes. If the contract is covered by the SCA or DBA and the wage determination applies to the worker’s classification, its rate may be higher. DOL states that meeting the EO minimum does not excuse compliance with applicable prevailing-wage requirements.
Where should I check state and local rates?
Use DOL’s Consolidated Minimum Wage Table as a starting point, then verify the current jurisdiction-specific rule. Confirm the work location, effective date, coverage conditions, and exceptions; the table does not decide whether a particular law covers a particular worker.
The Bottom Line
Which rate applies? First establish whether the worker and contract are covered by EO 13658, then check the worker’s location, any state or local minimum, and any applicable SCA or DBA wage determination. Pay the highest rate among the requirements that actually apply. As of October 12, 2026, DOL lists $13.65 per hour for covered non-tipped EO 13658 workers and a conditional $9.55 tipped cash wage; the former EO 14026 $15 rate is no longer enforced by DOL.
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