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President to raise minimum wage for federal contractors to $15 an hour

2 years 10 months 1 week ago Tuesday, April 27 2021 Apr 27, 2021 April 27, 2021 7:45 AM April 27, 2021 in News
Source: CNN

President Joe Biden is preparing to use his executive powers to increase the hourly minimum wage of federal contract workers to $15, CNN reports.

According to the news outlet, President Biden is expected to issue the executive order Tuesday, but it won't go into effect until early 2022.

The order will also reportedly eliminate the tipped minimum wage, which is now $7.65 an hour, by 2024 and ensure that federal contract workers with disabilities receive a minimum of $15 an hour.

This would impact hundreds of workers in a variety of fields, including cleaning professionals and maintenance workers, nursing assistants who care for veterans, cafeteria and other food service workers, and laborers who build and repair federal infrastructure.

Mr. Biden has long sought to hike the hourly minimum wage, but not all are in agreement with his outlook.

Some fear that increasing the hourly minimum wage for federal contract workers will force employers to hire fewer people, which would hurt federal contract workers in the long run and leave many without a job. 

Others argue that a wage increase will enhance worker productivity, generate higher-quality work by boosting workers' health, morale and effort, thereby resulting in lower turnover, absenteeism and supervisory costs.

At present, the hourly minimum wage for federal contract workers is $10.95.


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