President Obama will sign an Executive Order raising the minimum wage for workers under new federal contracts from $7.25 to $10.10 per hour, according to sources who say the president will announce the measure at tonight’s State of the Union Address.
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Get Your Report Now!The move is part of an Administration initiative to raise the minimum wage for all workers, including those in the private sector, according to the announcement, which also stated that the measure indexes the federal minimum wage to the rate of inflation.
CNN reports an official confirmed that the raise would be done in stages, and also explained that time is given to federal contractors to factor the wage increases into future bids.
The Executive Order would apply to over 2 million American workers, although only a small portion of workers, such food service workers at military bases, are at the minimum wage level or similar levels.
The Washington Post reports that in the State of the Union Address, the president will also support a bill raising the minimum wage for federal workers.