Obama raising minimum pay for new federal contracts

WASHINGTON — President Barack Obama will sign an executive order setting the minimum wage for workers under new federal contracts at $10.10 an hour, the White House said Tuesday. The president will announce the increase during his State of the Union address.

The increase from a national minimum wage of $7.25 an hour will not affect existing federal contracts, only new ones. Moreover, contract renewals will not be affected unless other terms of the agreement change.

The order would be one of the biggest examples in the State of the Union of Obama's vow to use presidential authority to push for policies by circumventing Congress.

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