News

Obama to raise minimum wage for some

Obama to raise minimum wage for some

PAY ME: U.S. President Barack Obama smiles as he arrives to deliver remarks at a reception with U.S. mayors at the White House in Washington Jan. 23. Photo: Reuters/Yuri Gripas

WASHINGTON (Reuters) – President Barack Obama will announce on Tuesday he is issuing an executive order to raise the minimum wage to $10.10 an hour for federal contract workers with new contracts, the White House said.

In his State of the Union address, Obama will also call on Congress to pass a bill that would increase the federal minimum wage for all workers to $10.10 an hour from $7.25 and index that to inflation going forward.

The executive order for new contracts or existing contracts in which terms are being changed would take effect at the beginning of next year. Issuing the order allows Obama to bypass Congress in a limited way, with Republicans opposed to a broad increase in the minimum wage.

Janitors and construction workers would be among the beneficiaries of the order, the White House said.

“A higher minimum wage for federal contract workers will provide good value for the federal government and hence good value for the taxpayer,” the White House said in a statement.

“Boosting wages will lower turnover and increase morale, and will lead to higher productivity overall. Raising wages for those at the bottom will improve the quality and efficiency of services provided to the government.”

Reducing inequalities between the rich and the poor and helping boost the middle class are expected to be key themes of Obama’s address on Tuesday night.

(Reporting by Jeff Mason and Steve Holland; Editing by Peter Cooney)

Recent Headlines

in Sports

Indianapolis Colts owner pleads guilty to intoxicated driving

Fresh
James Irsay, owner of the NFL's Indianapolis Colts, is pictured in this undated handout photo obtained by Reuters March 17, 2014.

Billionaire James Irsay, owner of the Indianapolis Colts, was arrested in March after failing roadside field-sobriety tests.

in Sports

Phillies’ Cole Hamels, bullpen combine for no-hitter

Fresh
Sep 1, 2014; Atlanta, GA, USA; Philadelphia Phillies starting pitcher Cole Hamels (35) throws the ball against the Atlanta Braves in the second inning at Turner Field.

Cole Hamels set up a combined no-hitter for the Philadelphia Phillies as they beat the Atlanta Braves 7-0 at Turner Field in Atlanta.

in National, World

ISIS releases beheading video of American Steven Sotloff

Fresh
A masked Islamic State militant speaks next to a man purported to be U.S. journalist Steven Sotloff at an unknown location in this still image from an undated video posted on a social media website.

The Islamic State militant group released a video purporting to show the beheading of U.S. hostage Steven Sotloff.