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OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON, DC 20301-3000
ACQUISITION
AND SUSTAINMENT
In reply refer to
DARS Tracking Number: 2024-O0001
MEMORANDUM FOR COMMANDER, UNITED STATES CYBER
COMMAND (ATTN: ACQUISITION EXECUTIVE)
COMMANDER, UNITED STATES SPECIAL OPERATIONS
COMMAND (ATTN: AQUISITION EXECUTIVE)
COMMANDER, UNITED STATES TRANSPORTATION
COMMAND (ATTN: ACQUISITION EXECUTIVE)
DEPUTY ASSISTANT SECRETARY OF THE ARMY
(PROCUREMENT)
DEPUTY ASSISTANT SECRETARY OF THE NAVY
(PROCUREMENT)
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
(CONTRACTING)
DEFENSE AGENCY AND DOD FIELD ACTIVITY DIRECTORS
SUBJECT: Class Deviation—Implementation of Injunction of Executive Order 14026,
Increasing the Minimum Wage for Federal Contractors
Effective immediately, contracting officers shall not use the clause at Federal Acquisition
Regulation (FAR) 52.222-55, Minimum Wages for Contractor Workers Under Executive Order
14026, in solicitations and contracts, including solicitations and contracts using FAR part 12
procedures for the acquisition of commercial products and commercial services, with the States
of Texas, Louisiana, or Mississippi or agencies of those States. Contracting officers also shall
not use the clause in any extension or renewal of an existing contract or exercise of an option
with the States of Texas, Louisiana, or Mississippi, or agencies of those States.
This class deviation applies only to these three States and their agencies as parties to
Federal contracts, regardless of the place of performance. It does not apply geographically to all
contractors or contracts within those three States.
This class deviation is required to implement a court injunction. On September 26, 2023,
the U.S. District Court for the Southern District of Texas enjoined President Biden and the
Department of Labor (DOL) from enforcing Executive Order (E.O.) 14026 or the DOL final rule
(published in the Federal Register at 86 FR 67126) against the States of Texas, Louisiana, and
Mississippi and their agencies. The minimum wage requirements of the final rule implementing
E.O. 14026 are not currently being enforced as to contracts or subcontracts to which the states of
Texas, Louisiana, or Mississippi (including their agencies) are a party. The injunction becomes
effective on October 4, 2023.
Class Deviation 2024-O0001
Implementation of Injunction on Executive Order 14026,
Increasing Minimum Wage for Federal Contactors
E.O. 13658, Establishing a Minimum Wage for Contractors (signed on February 12,
2014, and published at 79 FR 9851 on February 20, 2014) established the minimum wage for
certain Federal contractors at $10.10 per hour, to be increased annually thereafter by an amount
determined by the Secretary of Labor. Subsequently, E.O. 13838, Exemption From Executive
Order 13658 for Recreational Services on Federal Lands (signed on May 25, 2018, and published
at 83 FR 25341 on June 1, 2018) exempted from the minimum wage requirements of E.O. 13658
contracts or contract-like instruments entered into with the Federal Government in connection
with seasonal recreational services or seasonal recreational equipment rental for the general
public on Federal lands. This exemption did not apply to lodging and food services associated
with seasonal recreational services (e.g., seasonal recreational services include river running,
hunting, fishing, horseback riding, camping, mountaineering activities, recreational ski services,
and youth camps).
Following that exemption, on April 27, 2021, the President signed E.O. 14026, Increasing
the Minimum Wage for Federal Contractors (published at 86 FR 22835 on April 30, 2021). E.O.
14026 not only increased the hourly minimum wage to $15 for Federal contract workers, but
also, in Section 6, revoked E.O. 13838 in its entirety and superseded E.O. 13658 to the extent it
may be inconsistent with E.O. 14026.
On November 24, 2021, the DOL Wage and Hour Division published a final rule
implementing E.O. 14026 (see 86 FR 67126). On January 26, 2022, DoD, GSA, and NASA
published an interim rule (FAR Case 2021-014; see 87 FR 4117) amending the FAR to
implement E.O. 14026 and the DOL implementing regulations. This interim FAR rule increased
the minimum wage for Federal contractors to $15, effective January 30, 2022, and removed from
the FAR the exemption previously authorized by E.O. 13838 for application of the minimum
wage requirements for certain seasonal recreational services or the rental of seasonal recreational
equipment for the general public on Federal lands.
This class deviation remains in effect until rescinded. My point of contact is Mr. Larry
McLaury, who is available at larry.j.mclaury2.civ@mail.mil.
John M. Tenaglia
Principal Director,
Defense Pricing and Contracting