News

Obama to raise minimum wage for some

Obama to raise minimum wage for some

PAY ME: U.S. President Barack Obama smiles as he arrives to deliver remarks at a reception with U.S. mayors at the White House in Washington Jan. 23. Photo: Reuters/Yuri Gripas

WASHINGTON (Reuters) – President Barack Obama will announce on Tuesday he is issuing an executive order to raise the minimum wage to $10.10 an hour for federal contract workers with new contracts, the White House said.

In his State of the Union address, Obama will also call on Congress to pass a bill that would increase the federal minimum wage for all workers to $10.10 an hour from $7.25 and index that to inflation going forward.

The executive order for new contracts or existing contracts in which terms are being changed would take effect at the beginning of next year. Issuing the order allows Obama to bypass Congress in a limited way, with Republicans opposed to a broad increase in the minimum wage.

Janitors and construction workers would be among the beneficiaries of the order, the White House said.

“A higher minimum wage for federal contract workers will provide good value for the federal government and hence good value for the taxpayer,” the White House said in a statement.

“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.”

Reducing inequalities between the rich and the poor and helping boost the middle class are expected to be key themes of Obama’s address on Tuesday night.

(Reporting by Jeff Mason and Steve Holland; Editing by Peter Cooney)

Recent Headlines

14 hours ago in Sports

Congressman charges NFL with wrongdoing

pallone1614461738670

A senior House Democrat has found that National Football League officials improperly sought to influence a government study on the link between football and brain disease.

14 hours ago in National

Democrats, seeking unity, give Sanders say in party platform

14-overlay-8

The Democratic Party said on Monday it would give U.S. presidential contender Bernie Sanders a prominent say in writing its platform this year, a gesture that could ease tensions between Sanders' camp and party leaders, whom Sanders has accused of favoring rival Hillary Clinton.

14 hours ago in Sports

Tom Brady continues his fight with NFL

25-overlay-6

New England Patriots quarterback Tom Brady on Monday asked a U.S. appeals court to reconsider its ruling reinstating his "Deflategate" four-game suspension, saying the decision runs contrary to federal labor law.

14 hours ago in National

Hawaii could be first to put gun owners in federal database

hawaiigunrestrictions16134856688305

Hawaii could become the first state in the nation to enter gun owners into an FBI database that will automatically notify police if an island resident is arrested anywhere else in the country.

14 hours ago in Lifestyle, National

Kicking the habit: Adult smoking rate in U.S. is falling fast

cigarettes16137527645580

The smoking rate among U.S. adults has been falling steadily for decades but the latest survey from the Centers for Disease Control and Prevention finds the 2015 decline is the biggest in more than 20 years.