# DOL Raises Federal Contract Wage Rates

The Department of Labor (DOL) announced that, effective January 6, 2027, Executive Order 13658 minimum wages will increase to $14.05 per hour for nontipped employees and $9.85 per hour for tipped employees on covered federal contracts. The rates apply to covered contracts generally subject to the Davis-Bacon Act or Service Contract Act, including contracts awarded from January 1, 2015, through January 29, 2022. DOL also plans to publish an updated minimum wage poster.

- Contractors with covered awards must account for the new rates in labor-cost estimates and update payroll and wage-compliance procedures before January 6, 2027.
- Prime contractors should assess how the increase affects labor costs and subcontractor arrangements on covered work.
- Employers can use DOL’s updated poster once published to support workplace notice obligations.

**Jurisdictions:** federal
**Industries:** Construction & Infrastructure
**Topics:** Regulatory Compliance
**Published:** October 08, 2026

### Government Entities
- Department of Labor (DOL)

### Sources
- [DOL Publishes 2027 Federal Contract Minimum Wage Rates](https://news.bloombergtax.com/financial-accounting/dol-publishes-2027-federal-contract-minimum-wage-rates) - Bloomberg Tax