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The minimum wage for employees on federal contracts will increase to $10.10 effective January 1, 2015. President Obama signed an Executive Order increasing the minimum wage paid to only those workers who are performing work on a federal contract or subcontract to $10.10/hour ($4.90/hour for tipped employees). Regulations will be issued in 2014. It is possible that there may be legal challenges to President Obama’s authority to issue the Executive Order. Keep in mind that the Arizona minimum wage is currently $7.90/hour.