Raise the Wage
It will give businesses customers with more spending money.
It will grow the economy for everyone — and we can do it right now.
"What every American wants is a paycheck that lets them support their families, know a little economic security, pass down some hope and optimism to their kids. And that’s worth fighting for."
– President Obama, March 5, 2014
In his State of the Union address, President Obama called on Congress to raise the federal minimum wage from $7.25 to $10.10 an hour, and announced he would issue an Executive Order to raise the minimum wage to $10.10 for the individuals working on new federal service contracts.
Raising the minimum wage nationwide will increase earnings for millions of workers, and boost the bottom lines of businesses across the country.
Today, the real value of the minimum wage has fallen by nearly one-third since its peak in 1968. And right now, a full-time minimum wage worker makes $14,500 a year, which leaves too many families struggling to make ends meet.
Who's Helping Raise the Wage
Many businesses are already paying their workers higher wages, which they see as the right way to boost productivity, reduce turnover and increase profits. This includes large corporations like Costco, to small businesses like Punch Pizza in Minneapolis. Hear from one of Punch Pizza’s workers about why his raise mattered.
Craig Jelinek, Costco’s President and CEO:
"Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty."
President Obama in his address on February 19, 2014:
"In my State of the Union Address, I asked more businesses to do what they can to raise their employees’ wages. Today, I applaud Gap, Inc. for announcing that they intend to raise wages for their employees beginning this year – a decision that will benefit about 65,000 workers in the U.S."
A higher minimum wage can raise earnings and reduce poverty, which is why 21 states plus DC already have minimum wages above the current federal minimum wage of $7.25. Additionally, Delaware recently passed a law to raise its minimum wage that will go in to effect later in 2014.
President Obama took action to lift more workers’ wages by requiring that federal contractors pay their employees a fair wage of at least $10.10 an hour.