New Executive Order Rescinds the $17.75 Per Hour Federal Contractor Minimum Wage
March 24, 2025
On March 14, 2025, President Trump issued an Executive Order rescinding 18 previous orders, including Executive Order 14026, which had raised the minimum wage for federal contractors to $17.75 per hour, higher than both the federal and most state minimum wages. The rescission ends the legal uncertainty around this wage increase, which had been invalidated by the Ninth Circuit but upheld by the Fifth and Tenth Circuits. While the new order does not rescind Executive Order 13658, which set a lower minimum wage, it creates uncertainty about federal contractors' obligations under existing contracts that included the $17.75 wage.
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