Obama announced during his State of the Union address last
month that he intended to take executive action to raise wages
for federal contract workers, but the White House had not said
when he would do so.
The order will affect workers starting on January 1, 2015, and
applies to new contracts and replacements for expiring
"The executive order the president will sign today will benefit
hundreds of thousands of people," the White House said in a
"It will also improve the value that taxpayers are getting from
the federal government's investment. Studies show that boosting
low wages will reduce turnover and absenteeism, while also
boosting morale and improving the incentives for workers,
leading to higher productivity overall."
(Reporting by Jeff Mason; editing by Ken Wills)
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