President Obama Issues Executive Order to Raise Minimum Wage for Federal Contractors

Yesterday, President Barack Obama issued an Executive Order to raise the minimum wage for workers of federal contractors to $10.10 per hour.  The order follows the President’s commitment during last month’s State of the Union address, in which he vowed to act to raise the wage floor even without Congressional authorization.  The President’s Executive Order impacts hotels, restaurants, and personal services located on military bases and other federal facilities to which the order applies.

As Congress debates an increase in the minimum wage, the business community has been outspoken in its opposition to current proposals.  A Public Opinion Strategies survey concluded that more than two-thirds of franchise businesses and 50 percent of non-franchise businesses would make personnel decisions in order to adjust to an increased minimum wage.

An increase in the minimum wage might provide more take-home pay for workers, but it would ultimately hurt the very people it intends to help.  A minimum wage hike will jeopardizes entry-level jobs and make it more difficult for lower-skilled workers to move up the economic ladder.  It will also lead to increased automation of tasks formerly performed by a low-skilled workforce.

Click here to take action by telling your Senators and Representative to protect franchise businesses by rejecting an increase in the minimum wage.