Labor Department finalizes raise of minimum wage to $10.10 for workers with federal contracts

Associated Press

Labor Secretary Thomas Perez is issuing a final rule raising the minimum wage for employees of federal contractors to $10.10 an hour.

The action puts in force a step announced by President Barack Obama in February, and the Labor Department says nearly 200,000 American workers will benefit.

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The minimum federal wage is now $7.25 an hour. Obama has proposed the higher pay levels for all workers, but that has drawn resistance from Republicans in Congress. In announcing the new rule, Perez said that "by raising the minimum wage for workers on federal contracts, we're rewarding a hard day's work with fair pay."

The move comes as the administration considers delaying implementation of a minimum wage increase for home-care workers due to take effect on Jan. 1.