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Article updated: 1/29/2014 8:35 AM

Wage hike for federal contract workers limited

President Barack Obama’s plan to raise the minimum wage for federal contract workers is winning praise from unions and labor activists. But it could take a year or more before any hikes occur. And the impact may not be as widespread as advocates hoped.

President Barack Obama's plan to raise the minimum wage for federal contract workers is winning praise from unions and labor activists. But it could take a year or more before any hikes occur. And the impact may not be as widespread as advocates hoped.

 

Associated Press

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By Associated Press

WASHINGTON -- President Barack Obama's plan to raise the minimum wage for federal contract workers is winning praise from unions and labor activists.

But it could take a year or more before any hikes occur. And the impact may not be as widespread as advocates hoped.

Obama announced in his State of the Union address that he will sign an executive order setting the minimum wage for workers covered by new federal contracts at $10.10 an hour, a hefty increase over the current federal minimum of $7.25.

The increase is expected to cover about 10 percent of the 2.2 million federal contract workers. It won't take effect until 2015 and it doesn't cover existing federal contracts, only new ones.

Supporters call it a huge first step in the movement to lift wages.

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