More Executive Orders rescinded and an update on EO 14173

There were several important developments affecting federal contractors’ obligations on Friday, March 14. President Trump issued a new Executive Order (EO) eliminating federal contractor minimum wage, apprenticeship, and Project Labor Agreement (PLA) obligations imposed by President Biden’s EOs. Additionally, an appellate court stayed the nationwide injunction on the new certification of compliance with discrimination laws related to what the administration characterizes as “illegal” diversity, equity, and inclusion (DEI), which now permits the certification obligations to be included in federal contracts.

Rescinded EOs

The president rescinded EO 14026, “Increasing the Minimum Wage for Federal Contractors.” This nowrescinded EO applied to new or renewed federal contracts in 2022 and established an annual increase of the minimum wage for individuals working on federal contracts with the minimum wage increasing to $17.75 beginning January 1, 2025. Effective immediately, federal contractors should use the rate provided in a wage determination and will no longer be required to increase the hourly wage rate to meet the federal contractor minimum wage (this applies to both Service Contract Act and Davis-Bacon Act contracts).