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Tuesday, November 30, 2021

President Biden’s Order to Raise the Minimum Wage for Federal Contractors to $ 15 Goes into Effect January 30 | Mississippi News and Politics

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State Senator Sojourner and the Latino president of EmpowerMS agree that Biden’s order is counterproductive, saying the president has “helped” enough.

On Monday, the U.S. Department of Labor announced a final rule that implemented Executive Order 14026 It will increase the minimum hourly wage for employees on federal contracts effective January 30, 2022. President Biden signed the order on April 27, 2021.

Rule applies to all 50 states, the District of Columbia, and specific US territories. It requires the following:

  • Increase the minimum hourly wage for workers performing work on or in connection with covered federal contracts to $ 15 beginning January 30, 2022.
  • Continue indexing the federal contract minimum wage in future years to inflation.
  • Eliminate the tipped minimum wage for federal contract employees by 2024.
  • Guarantee a minimum wage of $ 15 for workers with disabilities who perform work under or in connection with covered contracts.
  • Restore minimum wage protections for equipment and guide suppliers operating on federal lands.

CNBC reported that The rule is expected to affect about 327,000 workers, including foodservice employees and nursing assistants who currently earn less than $ 15 an hour.

Labor Secretary Martin J. Walsh said in a statement that the Executive Order “improves the economic security of these workers and their families, many of whom are women and people of color.”

Acting Administrator, US Wage and Hour Division Jessica Looman said The final rule adds value to taxpayers by increasing worker productivity and reducing employee turnover and absenteeism.

“It also allows federal contractors to retain top talent and reduce recruiting and training costs,” he says.

However, there are many conservatives who are skeptical about the implementation of $ 15 per hour for employees of federal contractors.

Russ Latino, president of Empower Mississippi, says that artificially raising the wages of all federal contractor employees ignores regional pay differences in the labor market.

“Doing so will dramatically increase costs for both employers and taxpayers and will only serve to worsen our current inflation quagmire,” Latino told Y’all Politics. “President Biden is ignoring rule one when you find yourself in a hole. He needs to stop digging and let American employers and the American worker recover from a prolonged period of reckless government intrusion. He has ‘helped’ quite a bit.”

Mississippi State Senator Melanie Sojourner (right), who serves as a member of the Mississippi Senate Labor Committee, told Y’all Politics that there is a clear link between economic freedom and prosperity. The senator said that economies grow when people have the maximum opportunity to pursue their interests under limited government, regulatory efficiency and open markets. However, Biden’s executive order takes the opposite approach.

“First, Biden’s attempts to rule by executive order with a heavy hand are problematic. Second, his interference in the economy is counterproductive. Research documents the damaging effects of minimum wage laws on the labor market,” said the Senator Sojourner. “Such laws cannot generate additional revenue; they can only redistribute it. By doing so, raising the minimum wage will create a host of unintended consequences for Mississippi residents: loss of entry-level jobs, rising unemployment, and rising prices. higher for consumers and taxpayers. “

Garrett McInnis with Accelerate Mississippi, the organization that leads the state’s workforce development initiative, says that increasing household incomes for Mississippi families is a guiding principle of his work, but believes those advances should come through training in lieu of an executive order from the president.

“Our office is committed to developing and implementing strategies that provide more Mississippiians with pathways to high-paying careers through educational and training opportunities,” McInnis told Y’all Politics. “We do that through the training and education of our people so that they have a high impact, good careers, not by government mandates.”

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