President Signs Executive Order Raising Minimum Wage for Contractor Employees

President Obama today signed an executive order raising the minimum wage for contractor employees to $10.10 per hour beginning January 1, 2015. The order also includes provisions to ensure that tipped workers earn at least $10.10 overall, through a combination of tips and an employer contribution. The order is intended to “promote economy and efficiency in procurement by contracting with sources who adequately compensate their workers.”

According to the order, raising the pay of low-wage workers increases their morale and the productivity and quality of their work, lowers turnover and its accompanying costs, and reduces supervisory costs. As stated in a White House fact sheet, the employees who would see their wages go up under this executive order include nursing assistants providing care to veterans at nursing homes, concessions workers in National Parks, people serving food to troops, and individuals with disabilities working to maintain the grounds on military bases.