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Barack Obama to raise minimum wage to $10.10 per hour using Executive Order

barack obama

President Barack Obama before giving speech Photo by Joseph Earnest


by Joseph Earnest  January 28, 2014


Newscast Media WASHINGTON—The President wants to work with Congress to pass the Harkin-Miller bill that would increase the Federal minimum wage to $10.10 per hour, and index it to inflation thereafter, and he will continue to work with Congress to get that done. The President has also looked at what he can do through executive action to help raise wages for hardworking Americans.


In the State of the Union Address, the President will announce that he will use his executive authority to raise the minimum wage to $10.10 for those working on new federal contracts for services.

    Hardworking Americans – including janitors and construction workers – working on new federal contracts will benefit from the Executive Order (EO). This action will cover workers who are performing services or construction and are getting paid less than $10.10 an hour.  Some examples of the hardworking people who would benefit from an EO include military base workers who wash dishes, serve food and do laundry.

    A higher minimum wage for federal contract workers will provide good value for the federal government and hence good value for the taxpayer. 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. When Maryland passed its living wage law for companies contracting with the state, there was an increase in the number of contractors bidding and higher competition can help ensure better quality.

    The wage increase will be manageable for contractors. The increase will take effect for new contracts after the effective date of the order, so contractors will have time to prepare and price their bids accordingly.

It has been seven years since Congress last acted to increase the minimum wage and, adjusted for inflation, today the real value of minimum wage is roughly the same as what it was in the 1950s, despite the fact that the typical American family’s income has doubled since then. And right now a full-time minimum wage worker makes $14,500 a year, which leaves too many families struggling to make ends meet. Even after accounting for programs like the Earned Income Tax Credit, a family of four supported by a minimum wage worker still ends up living below the poverty line.

The President is using his executive authority to lead by example, and will continue to work with Congress to finish the job for all Americans by passing the Harkin-Miller bill. The bill would raise the Federal minimum wage for working Americans in stages to $10.10 an hour and index it to inflation thereafter, while also raising the minimum wage for tipped workers for the first time in over 20 years.    Add Comments>>











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