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

56 mins ago in Entertainment

Judge denies motion for new Gawker-Hulk Hogan trial

Fresh
hulk84135568722

A Florida judge has denied Gawker's motion for a new trial in the Hulk Hogan sex-video case and won't reduce a $140 million jury verdict.

1 hour ago in National

Clinton did not comply with federal email policy, watchdog finds

Fresh
15-overlay-13

Democratic presidential candidate Hillary Clinton's use of a private email server while U.S. secretary of state broke government rules and was not approved by State Department security officials, according to an internal government watchdog's report released on Wednesday.

3 hours ago in Local

Estate Claims Reveal Westerhuis’ Debts Before Murder-Suicide

SD sign

Westerhuis shot his wife and their children, set fire to their house, and killed himself in 2015.