DOL Declines to Enforce Biden-Era Order that Increased Federal Contract Workers’ Minimum Wages

On March 24, 2025, the U.S. Department of Labor said that it would no longer enforce Executive Order 14026 signed by former President Joseph Biden in April 2021 that raised the minimum wage for workers on federal contracts from $10.95 to $17.75 as of January 1, 2025.  The decision comes after Donald Trump rescinded 18 executive orders on March 14, 2025 that were signed by Biden, including Executive Order 14026.

Executive Order 14026 provided a significant pay bump to workers employed by private companies holding federal contracts, including cleaning professionals, maintenance workers, cafeteria and food service workers, and laborers who work in government buildings. Although Executive Order 14026 is no longer in effect, federal contract workers must still be paid minimum wages at the state or local level or at the rates in their collective bargaining agreements, if applicable.  

Several states challenged Biden’s authority to raise the minimum wage for federal contract workers in multiple courts with different results. Ultimately, the Fifth Circuit determined Biden acted within his executive authority, and after the challenging states appealed, the U.S. Supreme Court declined to hear the case.  That left the Biden-era Order intact—until Trump rescinded it, rendering those cases now moot.

Workers who believe their employer is improperly denying them wages, or subjecting them to other workplace violations, should seek legal counsel to analyze their potential claims.