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HR Law Alert: Federal Contractor Minimum Wage Increases

Beginning on January 1, 2023, the minimum wage for work performed on or in connection with federal contracts will increase as follows:

  • For contracts covered by Executive Order 13658: the minimum wage will increase to $12.15 per hour and the minimum base wage for tipped employees will increase to $8.50 per hour.
  • For contracts covered by Executive Order 14026: the minimum wage will increase to $16.20 per hour and the minimum base wage for tipped employees will increase to $13.75 per hour.

The Department of Labor has published helpful FAQs on Executive Order 13658 and Executive Order 14026. A side-by-side comparison of these executive orders, including the contracts covered by each, can be found here (though this document hasn’t been updated for 2023).

IRS Mileage Reimbursement Rate
The Internal Revenue Service (IRS) has not yet announced whether its optional standard mileage rate will change as of January 1, 2023. We’ll update the platform if the rate changes.

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