Minimum Wage Increased For Federal Contractors
The Obama Administration finalized its requirement for federal contractors today:
The Obama administration on Tuesday issued regulations requiring companies that do business with the federal government to pay their workers at least $10.10 an hour. . .
The 338-page rule will take effect on Jan. 1, and would apply to roughly 24,000 businesses with federal contracts, employing about 28 million workers, according to Labor Department figures.
Most contractors already earn at least $10.10 an hour, however. Roughly 200,000 workers stand to benefit directly from the regulations, according to administration estimates.
Congress should make this happen for everyone but this is a nice start.
Copyright 2014 Liberaland
By: Stuart Shapiro
Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.
10 responses to Minimum Wage Increased For Federal Contractors
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tiredoftea October 1st, 2014 at 14:19
A good step in the right direction in helping minimum wage workers to a livable wage.
tiredoftea October 1st, 2014 at 14:19
A good step in the right direction in helping minimum wage workers to a livable wage.
Robert M. Snyder October 1st, 2014 at 15:13
“The new standard, which will be adjusted for inflation, applies to construction projects, as well as the production of food, lodging, automobile fuel, souvenirs, newspaper stands and recreational equipment.”
According to the source document, the new minimum will be adjusted for inflation. As a Republican and as a business owner, I support that approach. Of course some people will be opposed to any increase in the minimum wage. But I think that most business owners are OK with the concept of a minimum wage that keeps pace with inflation. Small, predictable changes are usually preferable to large, unpredictable changes.
Chinese Democracy October 1st, 2014 at 16:49
Some conservative business owners who abhore ” Gov interference” … like say the owners of Wal Mart are just fine with paying wages so low that the Fed Gov has to step in and help with their employees food and health care costs.
I dont get the hypocrisy or is it greed
Robert M. Snyder October 1st, 2014 at 20:21
When I graduated HS in 1978, the minimum wage was $2.65. If it had been continually adjusted for inflation, it would be $9.67 today. So a $10.10 minimum wage seems reasonable to me.
I don’t think the “greed” accusation is fair. Everything that Wal-Mart sells is also sold by its competitors. A few years ago, I paid $1000 for a TV. I expected to get the best deal at Wal-Mart, but I discovered that Best Buy had the same TV for a lower price, and at Best Buy it came with a free Blu-Ray player.
My point is that, despite being the biggest retailer, Wal-Mart has serious competition. They cannot afford to unilaterally raise wages. When a higher minimum wage is legislated, that creates a level playing field, so nobody is placed at a competitive disadvantage.
If the minimum wage had been indexed to inflation back in 1978, we would not even be having this discussion today. According to Chris Matthews, it was the Democrats who opposed tying the minimum wage to inflation, because, according to Chris, they wanted to have the issue come up for a vote every few years, for political reasons. That self-serving political calculation has cost minimum wage workers billions of dollars.
Chinese Democracy October 2nd, 2014 at 01:19
thankfully Wal Mart has backed down in the living wage fight
Adjusted for inflation, the federal minimum wage peaked in 1968 at $8.56 http://goo.gl/08XkbV
Robert M. Snyder October 1st, 2014 at 15:13
“The new standard, which will be adjusted for inflation, applies to construction projects, as well as the production of food, lodging, automobile fuel, souvenirs, newspaper stands and recreational equipment.”
According to the source document, the new minimum will be adjusted for inflation. As a Republican and as a business owner, I support that approach. Of course some people will be opposed to any increase in the minimum wage. But I think that most business owners are OK with the concept of a minimum wage that keeps pace with inflation. Small, predictable changes are usually preferable to large, unpredictable changes.
Chinese Democracy October 1st, 2014 at 16:49
Some conservative business owners who abhore ” Gov interference” … like say the owners of Wal Mart are just fine with paying wages so low that the Fed Gov has to step in and help with their employees food and health care costs.
I dont get the hypocrisy or is it greed
Robert M. Snyder October 1st, 2014 at 20:21
When I graduated HS in 1978, the minimum wage was $2.65. If it had been continually adjusted for inflation, it would be $9.67 today. So a $10.10 minimum wage seems reasonable to me.
I don’t think the “greed” accusation is fair. Everything that Wal-Mart sells is also sold by its competitors. A few years ago, I paid $1000 for a TV. I expected to get the best deal at Wal-Mart, but I discovered that Best Buy had the same TV for a lower price, and at Best Buy it came with a free Blu-Ray player.
My point is that, despite being the biggest retailer, Wal-Mart has serious competition. They cannot afford to unilaterally raise wages. When a higher minimum wage is legislated, that creates a level playing field, so nobody is placed at a competitive disadvantage.
If the minimum wage had been indexed to inflation back in 1978, we would not even be having this discussion today. According to Chris Matthews, it was the Democrats who opposed tying the minimum wage to inflation, because, according to Chris, they wanted to have the issue come up for a vote every few years, for political reasons. That self-serving political calculation has cost minimum wage workers billions of dollars.
Chinese Democracy October 2nd, 2014 at 01:19
thankfully Wal Mart has backed down in the living wage fight
Adjusted for inflation, the federal minimum wage peaked in 1968 at $8.56 http://goo.gl/08XkbV