Federal Contractor Minimum Wage

Trump Reverses Biden’s $17.75 Federal Contractor Minimum Wage

President Trump rescinded President Biden’s executive order mandating a $17.75 minimum wage for federal contractors, reverting to a pre-2022 standard of $13.30 for existing contracts and the federal minimum wage ($7.25) or applicable state minimums for new ones. This action overturned a significant pay increase impacting roughly 20% of the U.S. workforce employed by federal contractors. The repeal also eliminated Biden’s pro-union and apprenticeship program incentives for federal contracts. This decision follows court rulings upholding Biden’s order, raising the possibility of future executive action by Trump to address other policy priorities.

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