WASHINGTON (AP) — President Barack Obama will sign an executive order setting the minimum wage for workers under new federal contracts at $10.10 an hour, the White House said Tuesday. The president will announce the increase during his State of the Union address.

The increase from a national minimum wage of $7.25 an hour will not affect existing federal contracts, only new ones. Moreover, contract renewals will not be affected unless other terms of the agreement change.

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