Obama signs order to raise minimum wage for federal contractors

WASHINGTON Wed Feb 12, 2014 3:25pm EST

1 of 3. U.S. President Barack Obama signs an executive order increasing the minimum wage for employees of federal contractors, in the East Room at the White House in Washington February 12, 2014. Obama signed the executive order on Wednesday to raise the minimum wage for federal contract workers to $10.10 an hour starting next year and encouraged employers nationwide to increase wages for their workers. The order will affect workers starting on Jan. 1, 2015, and applies to new contracts and replacements for expiring contracts.

Credit: Reuters/Larry Downing

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WASHINGTON (Reuters) - U.S. President Barack Obama signed an executive order on Wednesday to raise the minimum wage for federal contract workers to $10.10 an hour starting next year and encouraged employers nationwide to increase wages for their workers.

Obama announced during his State of the Union address last month that he intended to take executive action to raise wages for federal contract workers.

The order will affect workers starting on January 1, 2015, and applies to new contracts and replacements for expiring contracts.

Obama, who has also pressed Congress to enact legislation to raise the minimum wage for all workers nationwide, urged business leaders and government officials to do more to increase workers' incomes.

"I would ask any business leader out there, any governor, any mayor, any local leader listening: do what you can to raise your employees' wages," he said, rejecting arguments that doing so would hamper the economy.

"It's not going to depress the economy, it'll boost the economy," he said.

(Reporting by Jeff Mason; Editing by Jim Loney)

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Comments (24)
Shootist wrote:
I’ve been a Federal contractor off and on for 20 years. I’ve never met anyone on a Federal contract that makes anywhere near minimum wage (usually the workers are paid anywhere from 3 to 30 times minimum wage.

Are there any federal employees or contractors that actually work for minimum wage? Or is this action by the “Great and Powerful”® just so much astro-turf?

Feb 12, 2014 10:06am EST  --  Report as abuse
Bighammerman wrote:
Raising the minimum wage will not do anything good. It will lead to inflation that will reduce the buying power of all in the U.S. and especially hurt those on fixed income. Obama is doing this to buy votes from those who do not possess the intellect to understand what the consequences are and he is using our money to do it, not his. Congress needs to stop Obama by removing him from office.

Feb 12, 2014 11:29am EST  --  Report as abuse
@Shootist, all you have to do is read the article, it is a short one.

‘”The executive order the president will sign today will benefit hundreds of thousands of people,” the White House said in a statement.’

The number I was always hearing was about 500-520K

@Bighammerman, I do not know why I would ever try and reason with you, you are obviously so full of hate for the Black man, but hey let’s give it a try. there is no evidence that a modest raise in the minimum will cause a spike in inflation. Here is one analysis for you…
http://truth-out.org/news/item/14050
Yes one of the causes of inflation is wage increases, but these people make so little and will still make little, it does not effect overall wages too much, therefore will barely, if at all, effect inflation. And speaking of inflation, a little extra inflation would be a good thing economically right now, it is a bit too low. If anything we need more of it. I guess you need to look in the mirror regarding your statement of ‘those who do not possess the intellect to understand what the consequences’ because obviously you do not understand.

On another note I bet you have no problem with the real wage increases that CEO’s get, even if their companies are found guilty of massive violations, JP Morgan for example.

OO and FYI, you can not remove a sitting President just because you do not like him.

Feb 12, 2014 11:39am EST  --  Report as abuse
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