Obama to announce minimum pay hike for new federal contracts
WASHINGTON, D.C.- The White House says President Barack Obama will sign an executive order setting the minimum wage for workers under new federal contracts at $10.10 an hour. The president will announce the increase in his State of the Union address.
The increase will not affect existing federal contracts, only new ones.
The current minimum wage is $7.25 an hour.
Obama will renew his call for Congress to increase the national minimum wage to $10.10 and tie future increases to inflation.
Increasing the wage for federal contractors does not require congressional action.
The White House says those who would benefit from the executive order include federally contracted janitors and construction workers as well as workers in military bases who wash dishes, serve food and do laundry.
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