Federal Minimum Wage for Contractors Reduced

No, that’s not a typo. For 2025, the minimum wage for federal contractors has been set at $13.30 per hour. A new executive order by President Trump revoked a Biden order which had increased the rate to $17.75 per hour, including adjustments. Existing contracts will still have to be honored, but at their expiration, renewals will be at whatever the prevailing rate is at that time. Employers are at their discretion as to how to handle it, but as always, effective communication will be key.