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Minimum Wage Hike: What You Need to Know

By Dan Caplinger – Feb 1, 2014 at 3:11PM

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A new minimum wage hike is slated to take effect for federal contract workers. Find out how it'll affect you.

President Obama recently issued an executive order raising the minimum wage for federal contract workers to $10.10 per hour. But how the rise actually work, and who'll be affected by the move?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the details of the minimum-wage increase. Dan notes that the move will take effect for new contracts in 2015, leaving time for contractors to anticipate the changes. He also points out that the move won't necessarily affect a huge percentage of federal contract workers, as major contractors Boeing (BA 1.70%), Lockheed Martin (LMT 0.56%), and Northrop Grumman (NOC 0.66%) have large numbers of highly paid workers that do federal contract work. Still, Dan concludes that the wage increase will be an interesting experiment on a much-debated economic issue affecting labor relations.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin and Northrop Grumman. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Boeing Stock Quote
Boeing
BA
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Lockheed Martin Stock Quote
Lockheed Martin
LMT
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Northrop Grumman Stock Quote
Northrop Grumman
NOC
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