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Obama To Raise Minimum Wage For Contract Workers

Stephen Lam, Getty Images

WASHINGTON (AP) — President Barack Obama is raising the minimum wage for federal contractors from $7.25 to $10.10.

Obama will sign the executive order Wednesday in the East Room of the White House. He first announced the measure during his State of the Union address.

Because the measure applies only to new contracts, officials have said it will affect just a few hundred thousand workers. That’s a small percentage of the more than 2 million federal contractors.

The White House says the order requires that employees who work for tips make at least $10.10 overall. It also prevents contract workers from being paid less than others if they have disabilities that affect their productivity.

Obama is also calling on Congress to pass Democratic legislation to raise wages for all workers to $10.10.

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