President Barack Obama plans to act unilaterally to raise the minimum wage for employees of federal contractors, a move that asserts his executive powers before his State of the Union address in which he will press Congress to approve a broader increase this year.
The executive order would raise the minimum wage for workers on new federal contracts to $10.10 an hour, according to a fact sheet from a White House official. It said Mr. Obama would announce the new policy in his speech Tuesday....Of course, there is already a minimum wage for federal contractors under the Davis-Bacon Act of 1931. It mandates that contractors pay the prevailing wage in the local area--effectively the union negotiated wage.. I.e. well above (for most skills and in most areas) not only the federal minimum of $7.25, but also above the new $10.10 Obama is going to impose by fiat.
This is merely Presidential preening for the semi-economically-literate boys in the press corps. Of which, there appear to be many.