The Labor Department has formally adopted a $10.10 an hour minimum wage for federal contractors and their subcontractors, placing them far above the current national minimum wage of $7.25.
The new wage will take effect for all contracts signed after Jan. 1 as well as extensions or renewals of existing contracts. It will be indexed to inflation in future years.
The higher minimum will cover contracts related to everything from construction projects to providing food concessions and child care on government facilities.
President Obama originally signed an executive order calling for the higher wage in February. The new wage level matches the one the Senate Democrats have proposed in national legislation that has stalled in Congress.
The White House has used its control over federal contracting as a way to advance policies and issues that it hasn’t been able to get accomplished through Congress.
“By raising the minimum wage for workers on federal contracts, we’re rewarding a hard day’s work with fair pay. This action will also benefit taxpayers. Boosting wages lowers turnover and increases morale, and will lead to higher productivity,” Labor Secretary Thomas Perez said in the official announcement.
