Accessibility Tools

Skip to main content

Trump Executive Order Cancels a $17.75 Minimum Wage for Federal Contractors

Written on .

During the Biden Administration, in 2021, President Biden issued an executive order establishing a $15 minimum wage for federal contractors, stating that the raise would generate “higher–quality work by boosting workers’ health, morale and effort.”  He did this after efforts to raise the nationwide minimum wage as part of one of the COVID–19 relief bills failed.  Biden’s executive order also included annual adjustments for inflation, so that the current minimum wage for contractors under Executive Order 14026 is now $17.75.   President Biden acted pursuant to the Procurement Act, allowing the President to implement policies that promote “economy and efficiency” in federal procurement.  Several states brought litigation attacking the federal minimum wage for federal contractors, contending that the Procurement Act gave the President no broad policy making power to set a minimum wage for federal contractors.  In addition, the measures seemed inconsistent with other prevailing wage federal contracting laws.  Eventually the issue reached the federal appellate courts, with the Fifth Circuit and the Tenth Circuit upholding the $15 contractor wage, and with the Ninth Circuit going the other way. v

On March 14, President Trump nixed this executive order and also another order directing federal agencies to incentivize the use of registered apprentices by their contractors, which tended to drive federal infrastructure investments towards companies with union contracts.  Trump's recent actions rescinded Executive Orders in 14026, 14119 and 14126, favoring companies that participate in registered apprenticeships.  It also rejected requiring federal agencies to prioritize grant applicants that have project labor agreements or promote “voluntary union recognition, and neutrality with respect to union organizing.”

This article is part of our April 2025 Newsletter. 

View newsletter online

Download the newsletter as a PDF

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.
scales of justice
In April 2025, the Administration ordered federal agencies to cease enforcement of a legal theory known as “disparate impact,” a neutral po…
timeclock
The new Administration’s tax law lets most workers deduct up to $12,500 of the “half” of the “time-and-a-half” of federal overtime income t…
chairs
The U.S. Senate on December 19, 2025, confirmed two nominees to give the National Labor Relations Board (NLRB) the minimum number needed to…
american flag
On November 19, 2025, the EEOC released new guidance affirming EEOC Chair Andrea Lucas’s commitment in advancing robust enforcement and awa…
religuous symbols
In light of a recent U.S. Supreme Court ruling as well as an announcement by the new Chair of the EEOC, we expect an emphasis in the curren…
security vehicle
DHS announced the termination of all categorical family reunification parole programs for nationals of Colombia, Cuba, Ecuador, El Salvador…