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President Obama Takes Executive Action On Minimum Wage for Federal Contractors

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NASHVILLE, Tenn.-- Just hours before delivering his State of the Union address (8pm on Fox 17), President Obama took executive action to increase minimum wage for workers under new federal contracts from $7.25 to $10.10 an hour. 

The president is expected to announce his willingness to use executive actions during tonight's speech and is expected to push Congress to pass a plan to increase federal minimum wage for private sector workers over the next three years. 

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The new executive order affects only future contracts, not existing ones, and would only apply to contract renewals if other terms of the agreement changed. As a result, the order would benefit far fewer workers than the number foreseen by advocates of federal contract employees. 

Supporters of raising federal minimum wage believe it will help a struggling economy which has seen young people struggling to find jobs. Those against a raise say it would actually discourage businesses from hiring more workers.
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