US News

Obama bypasses Congress, raises minimum wage to $10.10

WASHINGTON — Bypassing Congress, President Obama signed an executive order Wednesday raising the minimum wage for federal contract workers to $10.10 an hour starting next year.

“While Congress decides what it’s going to do, I’m going to do what I can to help raise working Americans’ wages,” the president said at a White House signing ceremony.

“It makes a big difference for a lot of families.”

Obama urged legislators to follow his lead and lift the current $7.25-an-hour minimum wage by the same 39 percent nationwide — a prospect that’s doubtful given the divided Congress.

Labor Secretary Tom Perez said the higher wage would eventually cover “hundreds of thousands” of workers, but he couldn’t provide a short-term estimate.

Obama’s order will affect workers starting on Jan. 1, 2015, and applies to new contracts and replacements for expiring contracts.

The president urged business leaders and government officials to do more to increase workers’ incomes.