Minimum wage for federal government contractors will increase in January
In a matter of weeks, the minimum wage for thousands of federal government contractors will increase to $15 an hour.
It may sound like little, but for many it makes a big difference, especially in this time of inflation, reported Telemundo51.
President Joe Biden signed the executive order in April, and the increase will take effect on January 30.
"Wages have to be coupled to prices, because otherwise people will not have enough to spend and the economy will be depressed," said economist Isaac Cohen.
Some hope that this will serve as an example and revive the thorny debate on the minimum wage at the national level.
While the federal minimum wage is still $7.25 an hour, it has increased to $14 and $15 an hour in some places, such as Washington, DC and California.
And although for some it is about reaching a fair payment, voices continue to be heard from those who oppose it because they say it would be an economic burden for small businesses.
“It is a shock to the system, to the economy. Because you are requiring small business owners to pay double, to double the cost of their labor. And that's where the profits of these small businesses disappear," said Daniel Garza, of the Free Initiative.
Recently, private companies such as Bank of America and Macy's increased their minimum wage to respond to the challenges of the current times: the difficulty of hiring and retaining workers.
These challenges are also faced by the federal government.
Although the House of Representatives approved a bill to increase the federal minimum wage to $15 an hour by 2025, that measure would also have to have a green light in the Senate, where it remains stalled.
Miami Daily
Author: MiamiDiario JM 11:29 am