Obama raises minimum wage for contract workers - KALB-TV News Channel 5 & CBS 2

Obama raises minimum wage for contract workers

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WASHINGTON (AP) - President Barack Obama says that in the wealthiest nation on earth, no one who works full time should have to live in poverty.

Obama is speaking at a White House event where he'll sign an executive order increasing the minimum hourly wage for federal contractors from $7.25 to $10.10. He first announced the measure during his State of the Union address.

Because the measure applies only to new contracts, the White House says 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 affecting their productivity.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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