President Obama promised that 2014 would be a year of action to expand opportunity and grow the middle class. Today, the president upheld his promise to lift the minimum wage to $10.10 per hour for workers who are employed under federal contracts. A final rule announced by the Labor Department today implements Executive Order 13658, signed by the president on February 12, and will directly benefit nearly 200,000 American workers.
The underlying principle couldn't be simpler: no one who works full-time in America should have to raise their family in poverty. And if you serve meals to our troops for a living, for example, then you shouldn't have to go on food stamps in order to serve a meal to your family at home. By raising the minimum wage for these workers, we're not just upholding the president's promise, but the fundamental American promise that hard work should be rewarded with a fair wage.
Our action today will make a big difference for workers like Jackeline Osorio. She's a 21-year-old mother from Annandale, Virginia, who serves food to military personnel and Defense Department officials in the Pentagon food court. "I don't make enough money, and I have to pay some of my bills late," she says. "$10.10 an hour would help me pay my bills on time."
But this doesn't just help workers. It will also strengthen companies doing business with the federal government, thus giving taxpayers a better return as well. Carmen Ortiz Larsen is president of AQUAS, Inc., a federal government contractor that provides information technology management support. She says that a higher minimum wage is better for the bottom line: "From a business perspective, a higher minimum wage will reduce turnover and training costs, and lead to more productive workers who are focused on the work at hand, not on looking for another job that pays more."
Another business executive agrees. Jon Cooper is president of Spectronics Corporation, a leading manufacturer of ultraviolet equipment and fluorescent materials, which has been awarded numerous federal contracts over the years. "If a company is getting a contract paid for by taxpayer dollars, it's only right that they pay a $10.10 minimum wage," Cooper says. "Fair wages are part of the formula for success at my company."
The implementation of the Executive Order is an important step, as are similar efforts by state and local governments around the country. Yesterday I was in New York City to join Mayor Bill de Blasio as he announced a sweeping expansion of the Fair Wages for New Yorkers Act. More workers employed by city contractors will be covered by the living wage, and the hourly wage itself will increase.
But there's still no substitute for legislation that would give a well-deserved raise to low-wage workers nationwide. The increase to a $10.10 national minimum wage is long overdue, and it would benefit a total of 28 million people. This common-sense measure would empower workers and accelerate economic growth. It enjoys majority support from small businesses and the country at-large. It's the right thing to do and the smart thing to do.