Obama raises minimum wage for contract workers

Published on NewsOK Modified: February 12, 2014 at 1:31 pm •  Published: February 12, 2014

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.