New Minimum Wage Affects More Than Low-Wage Employees

Law360, New York (March 27, 2014, 1:06 PM EDT) -- On Feb. 12, 2014, President Obama signed an executive order raising the minimum wage for federal contractors to $10.10 per hour, starting Jan. 1, 2015. For federal contractors who have employees that earn less than $10.10 per hour, this executive order has the potential to impact much more than the wage rates of their lowest paid employees. Employers may need to increase the wages of more than just their lowest paid employees, due to equity and other considerations.

The policy change may therefore have a broader effect on firms’ compensation policies, including increasing the total amount the firms pay to workers,...

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