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

11 hours ago in Local

Rauner Repeats: Budget Can Still Be Passed

3-30-16 Rauner

Rauner: Keep up the good work and come to a compromise, lawmakers.

12 hours ago in Local

Industry Reacts to Rauner News Conference

Illinois Gov. Bruce Rauner signs an executive order on criminal justice reform at the Sangamon County Courthouse Wednesday, Feb. 11, 2015, in Springfield, Ill. Rauner's executive order will create the Illinois State Commission on Criminal Justice and Sentencing Reform.

Workers Comp? Didn't we already do that?

17 hours ago in Local

Lawmaker: Stop Telling People “Illinois Sucks”

Generic WTAX

Lawmaker says too many people say "Illinois sucks."

17 hours ago in Local

No Appeal — Again — for Blago Corruption Convictions

Former Illinois Gov. Rod Blagojevich, with his wife Patti at his side, speaks to the media Wednesday, March 14, 2012 in Chicago. The 55-year-old Democrat is due to report to a prison in Colorado on Thursday to begin serving a 14-year sentence, making him the second Illinois governor in a row to go to prison for corruption. (AP Photo/M. Spencer Green)

The Supreme Court won't reconsider its decision to reject former Illinois Gov. Rod Blagojevich's appeal of his corruption convictions.

17 hours ago in Local

SOS: No Extra Cost for Drivers License Changes

New Drivers License

The Illinois Secretary of State's office says a plan to issue driver's licenses and state identification cards in Illinois that are more secure won't require additional state funding.