In April 2021, the President of the United States, Joe Biden signed an executive order. The order signified the federal contractors to pay a minimum wage of $15-an-hour. Earlier, the minimum wage for federal workers was $10.95 per hour. Likewise, the minimum tipped wage was $7.65 per hour.
As per the White House, from Jan 30, 2022, the government must include a minimum wage of $15 in the new contract. It is compulsory for the agencies to implement this minimum wage into the new contracts by March 30, 2022.
What Does the Press Release Say?
The White House Press Release signifies that as per research If the minimum wage is increased, the workers spend more. Overall, this step can help in enhancing the local economy.
The executive order involves a provision indexing the minimum wage to keep up with the increasing cost of living. However, it does not include the tipped minimum wage by the year 2024.
As per Economic Policy Institute, up to 390,000 low-wage federal contractors will note a raise based on the order. The average annual pay surge for affected year-round workers is estimated to be $3,100. On checking the people who will see a raise, half will be women and half are likely to be Black/Hispanic.
The initiative has been appreciated by the entire nation. It’s a sigh of relief for numerous workers facing financial difficulties. Some consider the order to be an open door for better living.
Maximus is known to have the largest federally-contracted workforces in the nation. The employees are known to operate call centers handling Medicare and ACA Federally Facilitated Marketplace calls.
They have around 11 call centers with an employee strength of 10,000 agents. With that being said, this measure can render a positive impact on entry-level coworkers. That’s because they make around $10 per hour.
People are considering it as a useful step towards growing the economy and the country. Many individuals think that it’s a win for both the economy and the country.
FURTHER…
Saru Jayaraman, the President and co-founder of One Fair Wedge considers the order a victory too. He states that the measure puts an end to discriminatory wages. These discriminatory wages are quite common among women, people of color, and disabilities.
He requests Congress to follow the leadership of Joe Biden. Besides, he also expects that all workers will be provided the same opportunity. Overall, it should put an end to racist, sexist, and ablest subminimum wages in the United States.
AFL-CIO spokesperson John Weber talks with CNBC regarding the same. He says that it’s surely a success for working people in the nation but the fight should be continued. Weber continues that the fight should be consistent until everyone gets the same guarantee.
He makes a statement saying that building a recovery signifies rendering a fair return to them for their hard work. Thereby, resulting in a raise of $15 in the federal minimum wage.
