On March 28, 2025, the Fifth Circuit Court of Appeals vacated its previous ruling that permitted a $15 per hour minimum wage for federal contractors, shortly after President Donald Trump revoked the Biden administration rule setting that wage rate.
Articles Discussing The Minimum Wage Under The FLSA.
President Trump Ends $15-Per-Hour Contractor Minimum Wage Rate After Filing a Brief Defending Power to Set the Minimum Wage
On March 14, 2025, President Donald Trump issued Executive Order (EO) 14236—“Additional Rescissions of Harmful Executive Orders and Actions”—revoking eighteen executive orders and actions issued by former president Joe Biden. In particular, this new EO has revoked EO 14026 of April 27, 2021, which had established a $15-per-hour minimum wage
Federal Contractor Minimum Wage Mandate Revoked: Implications and Future Outlook
President Trump has revoked President Biden’s EO that increased the minimum wage for federal contractor employees. This action is part of a broader effort by Trump to reverse several of Biden’s executive orders, marking a significant shift in federal policy. (Refer to EO “Additional Rescissions of Harmful Executive Orders and
Trump Revokes Biden Federal Contractor Minimum Wage Mandate: What to Expect Next
TakeawaysPresident Trump has rescinded President Biden’s 2021 executive order increasing the minimum wage for employees of federal contractors. The minimum wage is now $13.30 per hour for federal contractors covered by President Obama’s 2014 executive order, which remains in effect.Trump’s action does not formally revoke a Department of Labor rule implementing Biden’s wage mandate. However, there is no longer a basis for enforcing the rule.Related links
President Trump Decreases Minimum Wage for Federal Contractors
On March 14, 2025, President Trump issued an executive order ending the obligation to pay individuals working on or in connection with certain federal contracts or subcontracts a minimum wage currently set at $17.75 per hour. In particular, Trump has rescinded 18 Biden executive orders, including Biden’s Executive Order 14026
Fifth Circuit Upholds Minimum Wage Rate for Federal Contractors
The Fifth Circuit Court of Appeals recently found the Biden administration operated within its authority when it raised the minimum wage for federal contractors to $15 per hour in 2022. This represents a relatively rare win for Biden administration policies in the Fifth Circuit, which has jurisdiction in Louisiana, Mississippi,
DOL Clarifies That Managers and Supervisors Can’t Wear Two Hats When It Comes to Tips
On January 14, 2025, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2025-1 pertaining to managers’ participation in a tip pool at a “quick service restaurant.” In the letter, the DOL reiterates its position, which was published in a final rule in September 2021, that managers and supervisors cannot
Supreme Court Won’t Consider Federal Contractor Minimum Wage Mandate
The Supreme Court on Monday, Jan. 13, 2025, declined to take up a decision addressing the president’s authority under the Procurement Act to issue a
Proposed Rule Would End Subminimum Wage for Employees with Disabilities
The U.S. Department of Labor (DOL) has issued a proposed rule to end the practice of paying subminimum wages to certain workers with disabilities. The
Littler’s Semi-Annual Rates Update for Minimum Wage, Tips, and Exempt Pay Increases on January 1, 2025 (and Other Developments)
While Americans across the country headed to the polls to decide who would govern their country, state, county, or city, most decisions were already made concerning what minimum pay rate would govern the employment of non-exempt and exempt employees on January 1, 2025. However, some state and local ballot measures
DOL Proposes Nixing Subminimum Wages for Workers With Disabilities
On December 4, 2024, the U.S. Department of Labor (DOL) proposed ending the practice of paying subminimum wages to workers with certain disabilities. The proposed rule would phase out subminimum wages for workers with disabilities over a three-year period.
DOL Opinion Letter Addresses Expense Reimbursement and Regular Rate
The U.S. Department of Labor (DOL) has released an opinion letter addressing whether per diem expense payments for tools and equipment may be excluded from the hourly rate when calculating overtime pay under the Fair Labor Standards Act (FLSA). (FLSA 2024-01, Nov. 8, 2024).
While the opinion letter doesn’t break
DOL Opinion Letter Offers Additional Insight Regarding Regular Rate Treatment of Expense Reimbursement Payments
On November 8, 2024, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2024-01. This letter provides additional clarity about whether daily expense reimbursement payments can be excluded from an employee’s regular rate when calculating overtime pay under the Fair Labor Standards Act (FLSA).
Federal Contractors Catch a Break: Ninth Circuit Strikes Down EO 14026 and DOL’s Minimum Wage Mandate
Takeaways:
Federal Contractors Should Prepare for 2025 Minimum Wage Hike as Legal Challenges Unfold
Federal contractors may need to be prepared to increase pay for employees working on, or in connection with, covered federal government contracts. The hourly minimum wage for employees performing work on federal contracts will rise from $17.20 to $17.75 on Jan. 1, 2025, the Department of Labor (DOL) has announced.