---
title: "Federal Law Alert: Federal Contractor Minimum Wage Increases"
description: "Federal Law Alert: Federal Contractor Minimum Wage Increases"
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# Federal Law Alert: Federal Contractor Minimum Wage Increases

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[Afilliated HR & Payroll](https://blog.affiliatedhrpayroll.com/author/ahrp-admin) 12/13/2022 [Minimum Wage](https://blog.affiliatedhrpayroll.com/tag/minimum-wage), [DOL](https://blog.affiliatedhrpayroll.com/tag/dol), [Contractor](https://blog.affiliatedhrpayroll.com/tag/contractor), [Department of Labor](https://blog.affiliatedhrpayroll.com/tag/department-of-labor), [Alert](https://blog.affiliatedhrpayroll.com/tag/alert)

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 1 Minutes

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:](https://mandrillapp.com/track/click/30204192/www.federalregister.gov?p=eyJzIjoiNjZXVXRQSDFVRjFQZHVINmRZdDlPX1QtUTVBIiwidiI6MSwicCI6IntcInVcIjozMDIwNDE5MixcInZcIjoxLFwidXJsXCI6XCJodHRwczpcXFwvXFxcL3d3dy5mZWRlcmFscmVnaXN0ZXIuZ292XFxcL2V4ZWN1dGl2ZS1vcmRlclxcXC8xMzY1OFwiLFwiaWRcIjpcIjlhYmUxYWNmNmQ4ZTQyN2JhNjQ4MjExY2Y5NGU2MzE1XCIsXCJ1cmxfaWRzXCI6W1wiZWQ1MDZiMWNiMjJkMmZjODJjN2NjNzQ1MTU4NjNhNmNhOWYxMjM3OVwiXX0ifQ) 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](https://mandrillapp.com/track/click/30204192/www.federalregister.gov?p=eyJzIjoiS0lNU2tJYW0yd1dwOC1NWUVkX01NRGdjeTY0IiwidiI6MSwicCI6IntcInVcIjozMDIwNDE5MixcInZcIjoxLFwidXJsXCI6XCJodHRwczpcXFwvXFxcL3d3dy5mZWRlcmFscmVnaXN0ZXIuZ292XFxcL2V4ZWN1dGl2ZS1vcmRlclxcXC8xNDAyNlwiLFwiaWRcIjpcIjlhYmUxYWNmNmQ4ZTQyN2JhNjQ4MjExY2Y5NGU2MzE1XCIsXCJ1cmxfaWRzXCI6W1wiYzg5ZDRjYjZkYTMyZTk1MmRmMzAzZjQxOTM4M2QxY2MyZGJmYTg2N1wiXX0ifQ): 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](https://mandrillapp.com/track/click/30204192/www.dol.gov?p=eyJzIjoiYklQWG9lTEJlMS1VZWtLWnNyN1pOSlQ1RmhZIiwidiI6MSwicCI6IntcInVcIjozMDIwNDE5MixcInZcIjoxLFwidXJsXCI6XCJodHRwczpcXFwvXFxcL3d3dy5kb2wuZ292XFxcL2FnZW5jaWVzXFxcL3doZFxcXC9nb3Zlcm5tZW50LWNvbnRyYWN0c1xcXC9taW5pbXVtLXdhZ2VcXFwvZmFxXCIsXCJpZFwiOlwiOWFiZTFhY2Y2ZDhlNDI3YmE2NDgyMTFjZjk0ZTYzMTVcIixcInVybF9pZHNcIjpbXCIxZjVlMmY3NWI0OGEzMjU3ZDQ5ZjY4NTk3OGZiMzE2ZDY5ZDYzNDhmXCJdfSJ9) and [Executive Order 14026](https://mandrillapp.com/track/click/30204192/www.dol.gov?p=eyJzIjoiRUtJeDBKUU5UM3BwcHhSRzF4bUJGQTRSR09rIiwidiI6MSwicCI6IntcInVcIjozMDIwNDE5MixcInZcIjoxLFwidXJsXCI6XCJodHRwczpcXFwvXFxcL3d3dy5kb2wuZ292XFxcL2FnZW5jaWVzXFxcL3doZFxcXC9nb3Zlcm5tZW50LWNvbnRyYWN0c1xcXC9lbzE0MDI2XFxcL2ZyZXF1ZW50bHktYXNrZWQtcXVlc3Rpb25zI2NvbnRyYWN0X2NvdmVyYWdlLTdcIixcImlkXCI6XCI5YWJlMWFjZjZkOGU0MjdiYTY0ODIxMWNmOTRlNjMxNVwiLFwidXJsX2lkc1wiOltcIjIxODk5OWJjNDU5OGJjNjM2ZGQwYzgwZTM4MzZiMzhhZmMxZTg4MDdcIl19In0). A side-by-side comparison of these executive orders, including the contracts covered by each, can be found [here](https://mandrillapp.com/track/click/30204192/www.dol.gov?p=eyJzIjoiVDlIb1M1Nk9TQzVqaUxncW5PZEJHLTFZTVpNIiwidiI6MSwicCI6IntcInVcIjozMDIwNDE5MixcInZcIjoxLFwidXJsXCI6XCJodHRwczpcXFwvXFxcL3d3dy5kb2wuZ292XFxcL2FnZW5jaWVzXFxcL3doZFxcXC9nb3Zlcm5tZW50LWNvbnRyYWN0c1xcXC9lbzE0MDI2XFxcL3NpZGUtYnktc2lkZVwiLFwiaWRcIjpcIjlhYmUxYWNmNmQ4ZTQyN2JhNjQ4MjExY2Y5NGU2MzE1XCIsXCJ1cmxfaWRzXCI6W1wiMDIxY2JhOTU3MjY0MDcyMmNhMGZjNTFlMzVmMTk1YWIwYWEzYTYyMVwiXX0ifQ) (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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