President Biden plans to order a $15 minimum wage for federal contractors.

President Biden plans to sign an executive order on Tuesday raising the minimum wage paid by federal contractors to $15 an hour, the latest in a set of ambitious pro-labor moves at the outset of his administration.

The new minimum is expected to take effect next year and is likely to affect hundreds of thousands of workers, according to a White House document. The current minimum is $10.95 under an order that President Barack Obama signed in 2014. Like that order, the new one will require that the new minimum wage rise with inflation.

Two administration officials said in a call with reporters that White House economists believed the increase would not lead to significant job losses, a finding in line with recent research on the minimum wage, and that it was unlikely to cost taxpayers more money. They argued that the higher wage would lead to greater productivity and lower turnover.

The White House also contends that while the number of workers directly affected by the increase is relatively small as a share of the economy, the executive order will indirectly raise wages beyond federal contractors by forcing other employers to bid up pay as they compete for workers.

Be the first to comment

Leave a Reply

Your email address will not be published.


*