Hunton Employment & Labor Perspectives

On March 24, 2025, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced a new Director—Catherine Eschbach. In the announcement of her appointment, it noted she is expected to transition OFCCP to a new mission scope consistent with Executive Order 14173.

Prior to her appointment, Eschbach worked for Morgan, Lewis & Bockius LLP and focused on “complex constitutional, statutory, and administrative law issues,” including cases that affected OFCCP. Eschbach’s prior experience also includes her service as a judicial clerk to Judge Jennifer Walker Elrod and Judge David Hittner, an appointment to the Grievance Oversight Committee by the Texas Supreme Court, and presidency of the Houston Lawyers Chapter of the Federalist Society. The appointment of a new OFCCP Director is a likely indicator that federal contractor compliance and the regulation of federal contractors will remain a priority for the new Administration.  

In addition to a new OFCCP director, federal contractors also received news about changes to the minimum wage threshold applicable to federal contractors. On March 14, 2025, President Trump issued an executive order rescinding 18 executive orders from the Biden administration, including Executive Order 14026, which had increased the federal contractor minimum wage to $17.75 per hour. This action effectively removes the requirement for federal contractors and subcontractors to pay workers this higher wage.

The federal contractor minimum wage was first established by President Obama in 2014 (Executive Order 13658), setting an initial minimum wage of $10.10 per hour, subject to annual increases. The Biden administration’s 2021 Executive Order 14026 further raised this wage and phased out lower wages for tipped employees. By 2025, the minimum wage under Biden’s order had reached $17.75 per hour.

It is unclear whether contractors must revert to the Obama-era minimum wage of $13.30 per hour or follow the general federal minimum wage of $7.25 per hour (or applicable state laws). The Department of Labor is expected to provide further guidance on this issue.

Employers should work with counsel to stay abreast of legal issues and ensure they are taking appropriate action.