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Labor Department proposes rule raising contractor minimum wage to $10.10

Jun. 13, 2014 - 06:00AM   |  
By ANDY MEDICI   |   Comments

The Labor Department has issued a proposed rule to raise the federal contractor minimum wage to $10.10 an hour for all contracts beginning January 1, 2015.

The proposed rule, issued June 12, stems from a February presidential executive order mandating the increase in the contractor minimum wage and supports hard work with fair pay, Labor Department secretary Thomas Perez said in a statement.

“Raising the minimum wage for workers on federal contracts will provide a much needed boost to many who are working hard, but still struggle to get by, and it will also benefit taxpayers with improved employee retention and productivity. Today the department took an important step toward making the promise of the executive order a reality for thousands of workers,” Perez said.

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The proposed rule establishes a process to make sure contractors adhere to the new minimum wage and is open to public comment until July 12.

But some workers at federal contractors have said the new minimum wage is not enough, with about 200 workers striking for a higher wage June 12 at various federal facilities.

“I’m grateful to the president for raising my wage to ten dollars an hour, but it’s not enough to care for my son,” said Rodelma Acosta, a McDonald’s worker at the Pentagon. “As a single mom, I still have to rely on food stamps and Medicaid because there’s nothing left after paying the rent.”

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