Giving America a Raise: A Progress Report

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In this year’s State of the Union address, President Obama called on Congress to raise the minimum wage from $7.25 to $10.10 an hour-a move that would boost the bottom lines of businesses and increase the earnings of 28 million hardworking Americans.

It’s a commonsense proposal that Republicans in Congress continue to block-which is why President Obama took action to raise the minimum wage for workers on new federal contracts. And states, cities, and businesses across the country are doing their part, too.

A new White House report released today looks at the progress businesses and communities are making in raising the minimum wage for millions of workers. In fact, since the President first called for a minimum wage increase in 2013, 13 states and the District of Columbia have passed laws to increase their minimum wage, which will benefit about 7 million workers.

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US Labor Secretary Thomas E. Perez Announces Proposed Rule to Raise the Minimum Wage for Federal Contract Workers

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WASHINGTON – Fulfilling President Obama’s commitment to make 2014 a year of action to strengthen the economy and grow the middle class, U.S. Secretary of Labor Thomas E. Perez today announced a proposed rule raising the minimum wage for workers on federal service and construction contracts to $10.10 per hour. The proposed rule implements Executive Order 13658, which was announced by the president on Feb. 12.

“A core American value is that hard work should be rewarded with fair pay. And as the president said in his State of the Union address, if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty,” said Secretary Perez. “Raising the minimum wage for workers on federal contracts will provide a much needed boost to many who are working hard, but still struggle to get by, and it will also benefit taxpayers with improved employee retention and productivity. Today the department took an important step toward making the promise of the executive order a reality for thousands of workers.”

“In America, nobody who works full time should have to raise their family in poverty,” said White House Domestic Policy Director Cecilia Muñoz. “President Obama is leading by example, raising the minimum wage for federal contract workers, and governors, mayors and businesses around the country are answering the call to join him. Now it’s time for Congress to finish the job and raise the wage for everyone.”

Hawaii Raises Minimum Wage to $10.10 Per Hour

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HONOLULU (AP) – Hawaii has raised its minimum wage to $10.10 per hour, putting the state among the first to meet President Obama’s goal of increasing the minimum wage nationwide.

 Gov. Neil Abercrombie signed the minimum wage bill into law in a ceremony Friday, marking the first time Hawaii’s minimum wage will be raised from $7.25 since 2007.The increase will be phased in gradually over four years. Abercrombie said he wished the hike was coming quicker, but “we’re swimming in the water that we’re in.”

“I always thought it’s not a minimum wage, it’s a survival wage,” Abercrombie said. “And in today’s world, that minimum wage is not a survival wage, certainly in Hawaii.”

Hawaii is the third state this year to increase its minimum wage to $10.10 per hour, following Connecticut and Maryland, said Jack Temple, policy analyst for the National Employment Law Project.

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Obama Seeks Wage Transparency With Executive Orders

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President Barack Obama will commemorate Equal Pay Day on Tuesday by signing two executive orders aimed at achieving pay equity among federal contractors, which make up an estimated one-quarter of the U.S. workforce.

The first executive order will prevent federal contractors from retaliating against employees who discuss how much money they make, as many employers have contracts prohibiting workers from disclosing information about their salaries, White House officials said during a conference call with reporters on Monday. The second executive order involves requiring federal contractors to disclose compensation data to the Department of Labor to increase transparency on payment for women and minorities, Betsey Stevenson, a member of the White House Council of Economic Advisers, said during the call.

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Department of Labor Will Examine Pay Threshold, Management Exemption for Overtime

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It will likely be months before the Obama administration details the specific changes it plans for overtime rules, but officials are looking at making two significant shifts.

In a hearing this week, Labor Secretary Thomas E. Perez said the Department of Labor would study both raising the wage threshold and overturning the 2004 rule that made certain salaried employees exempt from overtime because they perform some managerial duties.

“There are two issues we are working on in the regulation,” Perez said. “Number one, what should the threshold be, and secondly, how does the test work.”

Perez also said the current structure of the managerial exemption keeps deserving workers frozen out of overtime. “You can work 1 percent of your time in a management function and 99 percent of your time stocking shelves and you will be an exempt employee under the current regulation,” he said

Presidential Memorandum — Updating and Modernizing Overtime Regulations

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March 13, 2014

MEMORANDUM FOR THE SECRETARY OF LABOR

SUBJECT: Updating and Modernizing Overtime Regulations

The Fair Labor Standards Act (the “Act”), 29 U.S.C. 201 et seq., provides basic rights and wage protections for American workers, including Federal minimum wage and overtime requirements. Most workers covered under the Act must receive overtime pay of at least 1.5 times their regular pay rate for hours worked in excess of 40 hours per week.

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