Obama Set To Raise Minimum Wage For Federal Contract Workers - ABC FOX MONTANA NEWS, WEATHER, SPORTS - KTMF/KWYB

Obama Set To Raise Minimum Wage For Federal Contract Workers

Posted: Updated:
BOZEMAN -

In the State of the Union speech on Tuesday evening President Obama made a big push to raise the minimum wage for federal contract workers by almost three-dollars.

President Obama said he will sign an executive order that would raise the minimum wage for federally contracted employees from $7.25 per hour to $10.10 per hour.

White House Officials said this will affect about 200,000 low-wage workers including food service workers in federal buildings, security guards and construction workers. 

Although this will only affect federal contract workers, Montana State University Economic Professor, Carly Urban said it could eventually affect local workers.

"It may also increase the local labor market wages," said Urban. "If construction workers on a federal project are getting paid more than construction workers in the local market, then they might also get a higher wage."

In the past, the President has addressed raising the national federal minimum wage, but Congress has not agreed.

Urban said the idea of raising the minimum wage raises a lot of concerns.

"If we increase minimum wage then this is going to decrease employment, so less people are going to be employed," said Urban. "This could then cause unemployment rates among unskilled workers to be higher."

Steve Adams is the owner of Taco Time in Bozeman. His new hires start at minimum wage.

He said the minimum wage increase over the past couple years has been hard for his business.

"The increase in minimum wage leaves me very little room to reward long-term employees," said Adams. "It also makes it more difficult for me to justify hiring 14 to 15 year old people."

He hopes the minimum wage stays where it is for a while.

"I fear that it will be a trickle down effect just like most other things," said Adams.

The federal contract workers will not see the wage increase until 2015.

The minimum wage in Montana rose to $7.90 on January 1, which is almost two-dollars higher than the federal minimum wage.

  • Most Popular

  • Most Popular StoriesMost Popular StoriesMore>>

  • WATCH: Cell Phone Video Of Sinking Ferry Released As 270 Are Still Missing

    WATCH: Cell Phone Video Of Sinking Ferry Released As 270 Are Still Missing

    Friday, April 18 2014 4:21 PM EDT2014-04-18 20:21:35 GMT
    MOKPO, South Korea (AP) - Searchers have now put markers on the surface of the water where the South Korean ferry went down. Part of the ship had remained above the surface until today, but now the entire vessel is submerged. They're continuing the effort to find some 270 people who are missing and feared dead.
    MOKPO, South Korea (AP) - Searchers have now put markers on the surface of the water where the South Korean ferry went down. Part of the ship had remained above the surface until today, but now the entire vessel is submerged. They're continuing the effort to find some 270 people who are missing and feared dead.
  • Hotels Continue To Build In Bozeman

    Hotels Continue To Build In Bozeman

    Friday, April 18 2014 8:07 PM EDT2014-04-19 00:07:18 GMT
    The city of Bozeman could see up to five new hotels by 2015. The Comfort Suites in Bozeman is one of three new hotels built off Valley Center in the past year."Since then we have been growing and developing,"
    The city of Bozeman could see up to five new hotels by 2015.
  • UM Easter Egg Hunt Goes Green

    UM Easter Egg Hunt Goes Green

    Friday, April 18 2014 8:06 PM EDT2014-04-19 00:06:34 GMT
    With thousands of plastic eggs set to speckle the lawn at the University of Montana this weekend, a Missoula business is keeping the event green. Missoula Federal Credit Union is making recycling
    With thousands of plastic eggs set to speckle the lawn at the University of Montana this weekend, a Missoula business is keeping the event green.
  • UPDATE: Deadly Shooting In Spokane Valley; Authorities Looking For Witnesses

    UPDATE: Deadly Shooting In Spokane Valley; Authorities Looking For Witnesses

    Wednesday, February 12 2014 11:40 PM EST2014-02-13 04:40:22 GMT
    SPOKANE VALLEY, Wash. - One man was shot and killed following a high speed pursuit that ended near the Spokane Valley Mall on Tuesday night. It started around 7:00 PM when Spokane Police received a call from a man who was in a car claiming to be unstable and threatening suicide by forcing police to shoot him. 
    SPOKANE VALLEY, Wash. - One man was shot and killed following a high speed pursuit that ended near the Spokane Valley Mall on Tuesday night. It started around 7:00 PM when Spokane Police received a call from a man who was in a car claiming to be unstable and threatening suicide by forcing police to shoot him. 
  • Man Identified In Fatal Crash Friday Morning On Bowdish Rd.

    Man Identified In Fatal Crash Friday Morning On Bowdish Rd.

    Friday, April 18 2014 4:13 PM EDT2014-04-18 20:13:11 GMT
    SPOKANE, Wash. - The man killed in an early morning crash on Friday has been identified as 34-year-old, Alejandro E. Apodaca. Just before 12:30, Apodaca crashed his car on S. Bowdish Rd. He was traveling South on Bowdish near 17th when he lost control of his car, uprooting a tree in the front yard of a home.
    SPOKANE, Wash. - The man killed in an early morning crash on Friday has been identified as 34-year-old, Alejandro E. Apodaca. Just before 12:30, Apodaca crashed his car on S. Bowdish Rd. He was traveling South on Bowdish near 17th when he lost control of his car, uprooting a tree in the front yard of a home.
  • Forest Service Wants Ski Areas Open Longer

    Forest Service Wants Ski Areas Open Longer

    Friday, April 18 2014 8:13 PM EDT2014-04-19 00:13:32 GMT
    For the most part, the ski season is either over or winding down, but that doesn't mean the resorts have to close until next winter. Nationally, there are more than 100 ski areas on nearly 180,000
    For the most part, the ski season is either over or winding down, but that doesn't mean the resorts have to close until next winter.
  • Frontage Road Crash Victim Identified

    Frontage Road Crash Victim Identified

    Thursday, April 17 2014 1:37 PM EDT2014-04-17 17:37:02 GMT
    The Gallatin County coroner says 30-year-old Kari Friedman from Bozeman died in a crash at the intersection of Frontage and Valley Center Roads Wednesday. The Montana Highway Patrol said Friedman was turning
    The Gallatin County coroner says 30-year-old Kari Friedman from Bozeman died in a crash at the intersection of Frontage and Valley Center Roads Wednesday.
  • WARNING GRAPHIC PHOTOS: 150 Pound Bernese Mountain Dog Attacked By Two Pit Bulls

    WARNING GRAPHIC PHOTOS: 150 Pound Bernese Mountain Dog Attacked By Two Pit Bulls

    Friday, April 4 2014 5:11 PM EDT2014-04-04 21:11:26 GMT
    SPOKANE, Wash. - KHQ received a call into our newsroom from a viewer who was very upset with the way SCRAPS has handled her dog getting attacked by two pit bulls in their own front yard. Last Friday, March 28th, her stepson let their dog, a 150-pound dog outside in the front yard when he was attacked by two pit bulls.
    SPOKANE, Wash. - KHQ received a call into our newsroom from a viewer who was very upset with the way SCRAPS has handled her dog getting attacked by two pit bulls in their own front yard. Last Friday, March 28th, her stepson let their dog, a 150-pound dog outside in the front yard when he was attacked by two pit bulls.
Powered by WorldNow

Features

  • More Features
  • Powered by WorldNow
    All content © Copyright 2000 - 2014 WorldNow and Cowles Montana Media. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.