Obama hints at hiking minimum wage for certain workers

By Balitang America Staff, ABS-CBN North America Bureau

Jan. 16, 2014

REDWOOD CITY, Calif. – Another issue President Barack Obama indicated he could use his executive power on is raising minimum wage.

President Obama reportedly plans to hike up minimum wage for employees of federal contractors.

The move will benefit about two million people.

Supporters believe this action would boost efforts to raise minimum wage for all American workers, which would require congressional approval.

The economic policy institute, a non-partisan think tank, says boosting minimum wage could mean higher pay for 4.6 million workers, 2.6 million of whom are minimum wage workers.

The group says the other two million people will be affected indirectly by an increase in pay from business owners who have a mix of employees.

The group says employers cannot just raise the pay for the lowest level workers. They have to raise the pay of more senior workers too, to keep the pay structure in place.

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