Update (May 11, 2026): The Department of Labor has officially released the updated notice reflecting the new minimum wage rates under Executive Order 13658. This post has been updated to reflect the release. Covered federal contractors should replace any prior version of this notice immediately.
Synopsis
The United States Department of Labor has announced an increase to the federal contractor minimum wage under Executive Order 13658. Effective May 11, 2026, the minimum wage for covered federal contract workers increases to $13.65 per hour, and the tipped employee cash wage increases to $9.55 per hour. The Department of Labor released the official updated notice (Form WH1089, revised 05/26) on May 11, 2026, the same day the new rates took effect.
Changes for Tipped Employees
Tipped employees working on covered federal contracts are also subject to updated wage requirements. Effective May 11, 2026, the minimum cash wage for tipped employees will increase from $9.30 to $9.55 per hour. Employers may still apply a tip credit, but the combined total of the cash wage and tips received must meet or exceed the standard minimum wage of $13.65 per hour. If tips are insufficient to reach that threshold, the employer is required to make up the difference.
Implementation and Compliance
Covered federal contractors are required to display a notice informing employees of the applicable minimum wage under Executive Order 13658 in a location where it can be easily seen. At this time, the Department of Labor has not yet released the updated notice reflecting the new wage rates, though we anticipate it will be issued closer to the May 11, 2026 effective date. Once available, the revised notice will be incorporated into applicable labor law posters and distributed to customers covered under our compliance plans. Customers not currently enrolled in a compliance plan can also purchase the updated poster once it becomes available.
We will continue monitoring this development and provide updates as additional information becomes available.
Why This Matters
Federal contractors are legally obligated to pay covered employees at least the applicable minimum wage under Executive Order 13658. Failure to comply can result in contract penalties, back wage liability, and potential debarment from future federal contracting opportunities. Staying current with posting requirements is equally important: an outdated or missing wage notice can itself be a compliance violation. Whether you manage one location or many, ensuring your labor law posters reflect the latest federal rates is a straightforward step toward maintaining compliance.
Summary
Effective May 11, 2026, the Department of Labor has increased the minimum wage for workers on covered federal contracts under Executive Order 13658 from $13.30 to $13.65 per hour, with the tipped employee cash wage rising from $9.30 to $9.55 per hour. The updated official notice (WH1089 REV 05/26) was released on May 11 and must be displayed immediately at all covered work sites. These rates apply through December 31, 2026, and are adjusted annually based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Where Can I Find More Information?
- For broader guidance and state requirements, visit All In One Poster Company, a trusted provider of labor law and safety posters for every state in the country.
- For product info: Federal Contractors/Sub Contractors
- Updated posters reflecting the new wage rates will begin shipping in early May.
- Check back in early May when updated posters become available, right in time for the May 11 effective date.
