President Joe Biden will issue an executive order on Tuesday raising the minimum wage paid by federal contractors to $15 an hour, according to a White House statement.
Biden knows what he’s doing. This is how you get what you want, ramp up the pressure, without any screaming or dog n pony shows in Congress. Just watch, there’ll be a $15 minimum wage passed in some form of legislation before the end of the year.
Minimum wage laws are an effective local grass roots issue.
What is a living wage in MS is poverty in CA or NYC.
Biden’s move to raise it with Federal contractors though has the effect of keeping the issue front and center.
Eliminating the “tipped minimum wage” loophole is nearly as big a deal, even if just for federal contractors of whom only a handful will work as tipped employees.
The federal tipped minimum wage still remains $2.13 per hour, a dinosaur of a figure that has remained unchanged for 30+ years. It allows employers to pay only a pittance to their workers, including many who are not even directly tipped but only work in industries where tipping is part of the payment for service (like table hosts/hostesses).
Lets see, average price of home in the Twin Cities is up 20% in the past year to about 327,000. EVs start out at plus 40,000 grand and insurance costs are double than over ICE vehicles. Try buying either or both while earning fifteen bucks an hour.
A large percentage of the people who will benefit from this will think Biden had nothing to do with it. He could give everyone free health care tomorrow and his popularity would remain stuck in the low 50s thanks to the FOX tax on sanity that our country is paying.
The crazy is rolling out big time here in AZ - the truly besotted are all waiting with bated breath for the Cyber Ninjas to prove that Trump not only won AZ but every other state also, including California.
I remember when certain ppl told us that we needed a real progressive President, not Biden. Biden has now done more progressive stuff in 100 days than Bernard Sanders has in his entire life.
It’s generally agreed upon in economics that there is a “bubble up” effect in labor markets, such that a change in only one sector of the economy can drive up wages more or less across the economy. This change may very well have that effect.
Very true, labor markets are quite compartmentalized, and the fact is a “one size fits all” minimum wage is not the most efficient approach. Where I live in SE MI, the going rate for basic labor already sits around $15/hour, and in fact my company has had to increase our base wage just to attract and retain the workers we need (now starting at $16, up to $17 after 3 months, $18 at 6, etc).
Nonetheless, base wages across the country are too low, and this move will have a knock-on effect to some degree. It’s a good, easy start to prod the conversation along.