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Obama signs order to raise contractor minimum wage

Feb. 13, 2014 - 04:06PM   |  
By ANDY MEDICI   |   Comments

President Obama signed an executive order Feb. 12 that would raise the minimum wage for federal contractors to $10.10 an hour.

The increased wage will only apply to employee wages on new contracts beginning Jan. 1, 2015, according to the administration. President Obama had announced he would raise the wage during the annual State of the Union Address Jan. 28.

The administration has been pressured for months by outside groups and Democratic lawmakers to raise the minimum wage for federal contractors working at the minimum wage.

The increased wage would cover people such as nursing assistants at Veterans Affairs Department hospitals, concession workers in national parks and people serving food at military bases.

The executive order also includes an increase in the tipped minimum wage from $2.13 an hour to $4.90 an hour for all new contracts after Jan. 1, 2015. If the new minimum and tips do not equal $10.10 an hour the employer would be required to cover the difference.

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