Federal Contractor Minimum Wage: How to Check Coverage

Updated 4 November 2026 · Standard formula, shown below

This guide helps you determine whether your job is covered by the federal contractor minimum wage, which is higher than the standard federal minimum wage. You will learn what to check, where to look, and how to confirm your status. Start by gathering your job details and any contract information you have.

What You’ll Need

Your job title and a brief description of your duties
Your employer’s name and location
Any contract or project information you have (e.g., contract number, agency name)
Access to your pay stub or employment offer letter
Internet access to check official government resources

Step-by-Step

Identify your employer’s type. Determine if your employer is a federal contractor or subcontractor. Federal contractors are private companies that have a contract with a federal agency to provide goods or services. Subcontractors work under a prime contractor. If you work directly for a federal agency (like a government department), you are a federal employee, not a contractor, and this minimum wage does not apply to you.
Check if the contract is covered. The federal contractor minimum wage applies to contracts covered by the Fair Labor Standards Act (FLSA) that are entered into or renewed on or after January 1, 2015. This includes contracts for services, construction, and certain leases. It does not apply to contracts for the purchase of supplies or materials (unless they are part of a service contract).
Look for the contract clause. Covered contracts must include a specific wage clause (often called the “minimum wage” clause) that references Executive Order 13658 or 14026. Ask your employer for a copy of the contract or the clause. If the contract does not have this clause, it may not be covered.
Check the contract value and duration. Some contracts are exempt based on their value or length. For example, contracts under $2,500 are generally not covered. Also, contracts that are completed in less than 30 days may be exempt. Verify these details with your employer or the contracting agency.
Review your job duties. The minimum wage applies to workers performing on or in connection with a covered contract. If you spend any time working on the contract (even if you also work on other projects), you are likely covered. If you are entirely separate from the contract, you may not be covered.
Check the current minimum wage rate. As of January 1, 2024, the federal contractor minimum wage is $17.20 per hour (under Executive Order 14026). For contracts entered into before January 1, 2022, the rate is $12.15 per hour (under Executive Order 13658). Confirm which rate applies to your contract.
Compare your pay. Look at your pay stub. If your hourly rate is below the applicable federal contractor minimum wage, you may be entitled to a raise. If you are paid a salary, calculate your hourly equivalent by dividing your weekly salary by the number of hours you typically work.
Ask your employer or HR. If you are still unsure, ask your human resources department or direct supervisor. They should know whether your job is covered and what wage rate applies.
Contact the U.S. Department of Labor. If you believe you are covered but not being paid the correct wage, you can file a complaint with the Wage and Hour Division of the U.S. Department of Labor. They can investigate and help you recover unpaid wages.

Common Mistakes

Assuming all federal contractors are covered. Only contracts that meet specific criteria (value, date, type) are covered. Check the details.
Confusing federal employee with contractor. If you work directly for the government, you are not a contractor, and this rule does not apply.
Ignoring subcontractors. Subcontractors are also covered if their work is on a covered prime contract.
Using the wrong minimum wage rate. Make sure you use the correct rate based on the contract’s date.
Not considering tipped workers. Tipped employees must receive at least the full minimum wage when tips are included; the employer must make up the difference if tips fall short.

Tips

Keep a copy of your contract or any documents that mention the contract number.
Check the Department of Labor’s website for the latest minimum wage rates and updates.
If you work on multiple projects, track the hours you spend on each to ensure you are paid correctly.
When in doubt, ask for written confirmation from your employer about your coverage status.
If you file a complaint, do so promptly; there are time limits for wage claims.

Troubleshooting

What if my employer says I’m not covered, but I think I am? Ask for the contract number and check the contract clause. If they refuse, you can contact the Department of Labor for guidance.
What if my contract was signed before 2015? The minimum wage may not apply to that contract unless it was renewed or extended after that date. Check the renewal date.
What if I work remotely? Coverage is based on the contract, not your location. If your work is on a covered contract, you are covered.
What if I am a union member? Union contracts may have different wage rates, but they cannot be below the federal contractor minimum wage. Check your collective bargaining agreement.
What if I am paid a salary? Calculate your hourly rate by dividing your weekly salary by your regular hours. If it’s below the minimum, you may be entitled to more.

Frequently Asked Questions

Does the federal contractor minimum wage apply to all federal contractors?

No, it applies only to contracts covered by the FLSA that are entered into or renewed on or after January 1, 2015, and meet certain value and duration criteria.

What is the current federal contractor minimum wage?

As of January 1, 2024, it is $17.20 per hour for contracts entered into on or after January 1, 2022. For older contracts, it is $12.15 per hour.

I work for a subcontractor. Am I covered?

Yes, if your employer is a subcontractor on a covered prime contract, you are covered.

What if I am a tipped employee?

Your employer must pay you at least the full minimum wage when tips are included. If tips do not bring you up to that amount, the employer must make up the difference.

How do I file a complaint if I’m not being paid correctly?

You can file a complaint with the U.S. Department of Labor’s Wage and Hour Division online, by phone, or in person. They will investigate and may recover back wages for you.

Does this minimum wage apply to federal employees?

No, federal employees are covered by a different pay system, not the contractor minimum wage.

Method: the standard formula for this calculation, rounded as each result states. See how the calculators work or report an error.