Labor Law Updates

The U.S. Department of Labor (DOL) has announced the 2027 minimum wage for workers on certain federal contracts. Starting January 6, 2027, the rate under Executive Order 13658 increases to $14.05 per hour, up from $13.65. The minimum cash wage for tipped employees rises to $9.85 per hour, up from $9.55. The new rate itself is simple, but who it applies to is not.

Calling a worker an independent contractor doesn't make them one. Classification depends on how the work is performed, and federal and state agencies each apply their own tests to decide. Get it wrong, and your business could owe back wages, taxes and penalties.

Keeping up with federal, state and local labor law posters is already a big undertaking. In certain industries, however, those standard postings are only the starting point. On top of them comes a whole additional layer of industry-specific labor law posters, which are so easy to miss that many companies fall out of compliance without realizing it. Here's how to determine if extra postings are necessary for your business, and which ones need to be included. 

On February 9, 2026, the U.S. Department of Labor’s Wage and Hour Division will announce the applicable minimum wage rates for workers performing work on or in connection with federal contracts covered by Executive Order 13658. These rates apply beginning May 11, 2026, to certain federal contracts entered into between January 1, 2015 and January 29, 2022, that were not renewed or extended on or after January 30, 2022.

Recent presidential action has significantly altered key workplace rules for federal contractors — specifically, those related to minimum wage requirements and pay transparency. These changes not only affect how employers manage compensation and hiring practices but also have implications for workplace posting obligations.