Being a contractor for the federal government is going to get a little bit more expensive. President Obama plans to announce at the State of the Union speech tonight that he is going to use his pen and raise the minimum wage for federal contract workers. No doubt the added cost will be passed along to we the taxpayers.
President Obama will announce in the State of the Union address Tuesday that he will use his executive power to increase the minimum wage to $10.10 per hour for workers on new government contracts, fulfilling a top demand by liberal lawmakers and groups, according to a White House document.
Obama will also renew his call for Congress to pass legislation to raise the federal minimum wage for all workers from $7.25 per hour to $10.10 per hour by 2015. But the president is taking the executive action with no clear timeline for Congress acting on the broader legislation. Previously, the White House said it wanted to concentrate on the legislative route for boosting the minimum wage.
If you are currently a federal contract worker don’t celebrate too soon. This only will apply to new contracts. Anyone with a problem with that should take it up with King Barack.