Arizona Tribune - Federal Contractor Minimum Wage Update Takes Effect in 2026

Beginning May 11, 2026, the federal contractor minimum wage for certain covered contracts will increase to $13.65 per hour for non-tipped workers and $9.55 per hour for tipped employees.

The update is tied to Executive Order 13658, which established a wage floor for certain workers performing services under covered federal contracts and includes annual adjustments based on economic factors.

Federal wage requirements are regularly adjusted and directly affect payroll processing, reporting and project cost tracking. Depending on contract requirements, contractors may also need to consider how the updated wage interacts with other federal regulations, including Davis-Bacon Act prevailing wage requirements.

The article covers:

• How the federal contractor minimum wages differ from prevailing wages

• How contract timing can affect wage applicability

• Considerations as the new rate takes effect

• Potential impacts on payroll records, job cost tracking and labor cost projections

To learn more about the 2026 federal contractor minimum wage update, read here.

Foundation Software, LLC

Foundation Software has been the leading provider of construction software and services since 1985, delivering products that cover a project's entire lifecycle, including job cost accounting, expense management, takeoff & estimating, project management, safety management, HR management, mobile field apps and payroll services. For information, call (800) 246-0800, visit www.foundationsoft.com or email [email protected].

Media Contacts

Tracie Kuczkowski | VP of Marketing
[email protected] | (800) 246-0800 x 7933

Samantha Ann Illius | Marketing Relations Coordinator and Influence Specialist
[email protected] | (800) 811-5926 x 4823

SOURCE: Foundation Software

View the original press release on ACCESS Newswire

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