[Nfbmt] Rewarding Hard Work

[James Aldrich]

From:Lewis, AnilTo:Affiliate Presidents 
(state-affiliate-leadership-list at nfbnet.org)nfb-legislative-directors at nfbnet.orgSubject:[State-affiliate-leadership-list] 
FACT SHEET - Opportunity For All: Rewarding Hard Work


FYI



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


• 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.


• 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.


• 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.


• 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.


• 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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