[Ct-nfb] minimum wage , updates

Elizabeth Rival erival at comcast.net
Tue Feb 18 13:29:33 UTC 2014


] On Behalf Of Fredric Schroeder
Sent: Wednesday, February 12, 2014 11:53 AM
To: NCSAB Membership
Subject: [NCSAB Members] FACT SHEET - Opportunity For All: Rewarding Hard
Work

 

As you will see below, the President will be issuing an Executive Order
raising the minimum wage for federal contract workers to $10.10 an hour. The
President announced his intent to raise the minimum wage for federal
contract workers as part of his State of the Union Address earlier this
month. Shortly after the State of the Union address, advocates raised the
question of whether the increased minimum wage for federal contract workers
would apply to people with disabilities who are working under special wage
certificates. Initially, the White House said that the increased minimum
wage would not guarantee the higher minimum wage for people with
disabilities. People with disabilities working under special wage
certificates would continue to be paid based on their productivity.

 

As you will read below, the White House appears to have changed its position
in its soon to be issued Executive Order. The Draft Executive Order
acknowledges that many people with disabilities are working under special
wage certificates; however the draft Executive Order explicitly applies the
increased minimum wage to workers with disabilities. Specifically, the draft
Executive Order states in part that it “Covers individuals with
disabilities.  Under current law, workers whose productivity is affected
because of their disabilities may be paid less than the wage paid to others
doing the same job under certain specialized certificate programs. Under
this Executive Order, all individuals working under service or concessions
contracts with the federal government will be covered by the same $10.10 per
hour minimum wage protections.”  

 

The President will sign the Executive Order at a ceremony later this
afternoon.

 

 

From: White House Office of Communications
[mailto:noreply at messages.whitehouse.gov] 
Sent: Wednesday, February 12, 2014 7:39 AM
To: NFB Information
Subject: FACT SHEET - Opportunity For All: Rewarding Hard Work

 

THE WHITE HOUSE

Office of the Press Secretary

FOR IMMEDIATE RELEASE

February 12, 2014 

 

FACT SHEET - Opportunity For All: Rewarding Hard Work

 

Raising the Minimum Wage through Executive Order to $10.10 for Federal
Contract Workers

& Calling on Congress to Finish the Job for All Workers by Passing the
Harkin-Miller Bill

 

Today, continuing to fulfill his promise to make 2014 a year of action, the
President will sign an Executive Order to raise the minimum wage to $10.10
for federal contract workers. 

 

The Executive Order the President will sign today will benefit hundreds of
thousands of people working under contracts with the federal government who
are making less than $10.10 an hour. It will also improve the value that
taxpayers are getting from the federal government’s investment. Studies show
that boosting low wages will reduce turnover and absenteeism, while also
boosting morale and improving the incentives for workers, leading to higher
productivity overall. These gains improve the quality and efficiency of
services provided to the government.

 

In his State of the Union Address, President Obama pledged to both take
executive action wherever he can and work with Congress to increase
opportunity for all Americans. Consistent with that pledge, the President
will continue to work with Congress to finish the job to raise the minimum
wage for all Americans and pass the Harkin-Miller bill so that all workers
can be paid at least a $10.10 minimum wage.  

 

 Details of the Executive Order  

 

Ø The Executive Order will raise the minimum wage to $10.10 effective for
new contracts beginning January 1, 2015.   The higher wage will apply to new
contracts and replacements for expiring contracts.  Boosting wages will
lower turnover and absenteeism, and increase morale and productivity
overall. Raising wages for those at the bottom will improve the quality and
efficiency of services provided to the government.

 

Ø Benefits hundreds of thousands of hardworking Americans. There are
hundreds of thousands of people working under contracts with the federal
government to provide services or construction who are currently making less
than $10.10 an hour.  Some examples of the hardworking people who would see
their wages go up under this Executive Order include nursing assistants
providing care to our veterans at nursing homes, concessions workers in
National Parks, people serving food to our troops, and individuals with
disabilities working to maintain the grounds on military bases.

 

Ø Includes an increase in the tipped minimum wage.  This executive order
also includes provisions to make sure that tipped workers earn at least
$10.10 overall, through a combination of tips and an employer contribution.
Employers are currently required to pay a minimum base wage of $2.13 per
hour, a base that has remained unchanged for over twenty years, and if a
worker’s tips do not add up to the minimum wage, the employer must make up
the difference. Under the Executive Order, employers are required to ensure
that tipped workers earn at least $10.10 an hour.  The Executive Order
requires that employers pay a minimum base wage of $4.90 for new contracts
and replacements for expiring contracts put out for bid after January 1,
2015.  That amount increases by 95 cents per year until it reaches 70
percent of the regular minimum wage, and if a worker’s tips do not add up to
at least $10.10, the employer will be required to pay the difference.  

 

Ø Covers individuals with disabilities.  Under current law, workers whose
productivity is affected because of their disabilities may be paid less than
the wage paid to others doing the same job under certain specialized
certificate programs. Under this Executive Order, all individuals working
under service or concessions contracts with the federal government will be
covered by the same $10.10 per hour minimum wage protections.  

 

Ø Improves value for the federal government and taxpayers.  One study showed
that when Maryland passed its living wage law for companies contracting with
the state, there was an increase in the number of contractors bidding and
higher competition can help ensure better quality. The increase will take
effect for new contracts and replacements for expiring contracts put out for
bid after the effective date of the order, so contractors will have time to
prepare and price their bids accordingly.

 

Continuing to Work With Congress, States and Localities to Help All Workers

 

The President is using his executive authority to lead by example, and will
continue to work with Congress to raise the minimum wage for all Americans
by passing the Harkin-Miller bill. The bill would raise the Federal minimum
wage for working Americans in stages to $10.10 and index it to inflation
thereafter, while also raising the minimum wage for tipped workers for the
first time in over 20 years.  The President will also continue to support
and encourage state, local and private sector efforts to increase wages and
help more working families.  

 

§  Businesses like Costco have supported past increases to the minimum wage
because it helps build a strong workforce and profitability over the long
run. Low wages are also bad for business, as paying low wages lowers
employee morale, encourages low productivity, and leads to frequent employee
turnover—all of which impose costs.  

 

§  Across the country, Americans are saying it’s time to raise the minimum
wage. The President believes that it’s time for action, and people across
the country agree. Since the President called for an increase in the minimum
wage in last year’s State of the Union, five states have passed laws
increasing their minimum wage. And many businesses, from small businesses to
large corporations, see higher wages as the right way to boost productivity
and reduce turnover and therefore boost their profitability. 

 

§  Raising the minimum wage is good for government, good for business and
workers and key to a stronger economy.  A range of economic studies show
that modestly raising the minimum wage increases earnings and reduces
poverty without jeopardizing employment.  Higher wages can also boost
productivity, increase morale, reduce costs and improve efficiency.   

 

§  Raising the minimum wage will make sure no family of four with a
full-time worker has to raise their children in poverty. It has been seven
years since Congress last acted to increase the minimum wage and, adjusted
for inflation, today the real value of minimum wage is roughly the same as
what it was in the 1950s, despite the fact that the typical American
family’s income has doubled since then. And right now a full-time minimum
wage worker makes $14,500 a year, which leaves too many families struggling
to make ends meet. Even after accounting for programs like the Earned Income
Tax Credit, a family of four supported by a minimum wage worker still ends
up living below the poverty line.

 

§  Indexing the minimum wage to inflation would help lower-income workers
keep up in the future. Since it was first established in 1938, the minimum
wage has been increased 22 times, but was eroded substantially over several
prolonged periods between increases because of inflation. Indexing would
prevent a repeat of the 34 percent decline in the real value of the minimum
wage from 1978 to 1989 and the 19 percent decline in real value from 1998 to
2006, as well as the 40 percent decline in the real value of the base wage
for tipped workers since it was last raised in 1991. Last year alone,
workers earning the minimum wage basically got the equivalent of a $200 pay
cut because the minimum wage stayed the same while the cost of living went
up.  Democrats and Republicans agree that indexing the minimum wage to
inflation would ensure that working families can keep up with expenses.
Unfortunately, those families will continue suffer if Congress continues to
not act. 

 

§  Helping parents make ends meet. Around 60 percent of workers who would
benefit from a higher minimum wage are women.  Less than 20 percent are
teenagers.  Also, those workers who would benefit from an increase in the
minimum wage brought home 46 percent of their household’s total wage and
salary income in 2011.  Raising the minimum wage directly helps parents make
ends meet and support their families.

 

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