President Joe Biden released a statement Friday afternoon touting the pending $15 minimum wage for federal workers and contractors, which goes into effect on Sunday.
The move comes after Democrats failed to increase the federal minimum wage last year, with centrists balking at the $15 figure.
“A job is about more than a paycheck. It’s about dignity,” Biden said in a prepared statement. “When I was running for president, I said it was past time to increase the federal minimum wage to $15 an hour. Last year, I made a down payment on that pledge with executive orders directing my administration to work toward ensuring that employees working on federal contracts and federal employees earned a $15 per hour minimum wage.”
The push for a $15 minimum wage began with fast-food workers in 2012, with backing from unions. Since then, California and several major cities have instituted mandatory pay at or exceeding the number, though it remains far lower in much of the country. Eight states are scheduled to raise their minimum wages by at least $1 during 2022.
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The $15 minimum wage for contractors will immediately affect nearly 70,000 employees, according to the White House. Some 300,000 employees of federal contractors will see a raise to $15 an hour over the course of the year.
“These are the customer service representatives who answer the phones to ensure that Americans get the health care they deserve; wildland firefighters who protect our forests and communities; custodial workers who keep our military bases clean and safe; nursing assistants who care for our veterans; and laborers who build and repair federal facilities,” Biden said in the statement.
The workers who will disproportionately benefit from this pay increase are women, workers of color, and workers with disabilities, the White House said.
“This increase will provide those workers and their families a little more breathing room,” Biden said. “And because we know that higher wages boost productivity and mean lower job turnover, these orders will allow the government to do its work better and faster.”
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Democrats are still pushing Congress to enact a federal $15 minimum wage. Business groups are pushing back against the idea, arguing it would raise costs for customers, cause some businesses to close, and reduce hiring.