President Obama plans to issue an executive order requiring federal contractors to pay employees at least $10.10 per hour, starting in 2015. The announcement came during Obama’s Jan. 28 State of the Union address, in which he also called on Congress to pass legislation raising the national minimum wage to $10.10 per hour, a 39% increase above the current federal minimum wage of $7.25.
Obama said the order would require contractors to pay federally funded employees the higher wage “because if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty."
A 2013 survey by the National Employment Law Project found that 74% of service employees working for federal contractors earn less than $10 per hour.
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