Obama Signs Executive Order Creating Higher Minimum Wage for Employees of Government Contractors

As he promised to do in his State of the Union address, President Obama today signed an Executive Order establishing a minimum wage for federal contractors. 

The Executive Order states that its purpose is to “increase efficiency and cost savings in the work performed by parties who contract with the Federal Government by increasing to $10.10 the hourly minimum wage.”  The Order contends that “[R]aising 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.  These savings and quality improvements will lead to improved economy and efficiency in Government procurement.” Continue reading this entry at Littler's DC Employment Law Update.

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