How the New Minimum Wage Hike Will Work

The minimum wage is going to rise for over 500,000 American workers whether Congress likes it or not. In Tuesday’s State of the Union address, President Obama will announce a unilateral executive action to raise the minimum hourly pay that companies that receive federal contracts must offer, a victory for workers who have been walking off the job at federal facilities in Washington D.C. since last spring. The new $10.10 minimum wage will not apply to existing contracts, but all new contracts must comply with it.

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