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September 21, 2014

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Obama raises minimum wage for contract workers

WASHINGTON — President Barack Obama says that in the wealthiest nation on earth, no one who works full time should have to live in poverty.

Obama is speaking at a White House event where he'll sign an executive order increasing the minimum hourly wage for federal contractors from $7.25 to $10.10. He first announced the measure during his State of the Union address.

Because the measure applies only to new contracts, the White House says it will affect just a few hundred thousand workers. That's a small percentage of the more than 2 million federal contractors.

The White House says the order requires that employees who work for tips make at least $10.10 overall. It also prevents contract workers from being paid less than others if they have disabilities affecting their productivity.

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