President Barack Obama’s Executive Order raising the minimum wage for federal contractors and subcontractors is set to take effect for all federal contracts beginning on or after January 1.
Obama signed Executive Order 13658 on February 12. The U.S. Department of Labor (DOL) announced the final rule implementing the order on October 1. The DOL has said the order will affect nearly 200,000 workers.
Obama had urged Congress to raise the federal minimum wage for all workers covered under the Fair Labor Standards Act (FLSA) to $10.10 an hour, but that effort failed in Congress. The current minimum wage, in force since 2009, is $7.25 an hour. Obama’s Executive Order applies only to employees of federal contractors and subcontractors. Congressional action is necessary to raise the general minimum wage.