Remarks on Signing an Executive Order Establishing a Minimum Wage for Contractors
Issued 2014-02-12 by Barack Obama
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
President Obama signed an executive order raising the minimum wage for workers employed by federal contractors. This action affects people who work on federal contracts—meaning they work for private companies that do business with the federal government. The order requires these companies to pay their workers more than the current minimum wage when they're working on federal projects.
This executive order is part of what the President called a "year of action" to expand economic opportunity without waiting for Congress to pass new laws. According to the President, while the economy had been growing and creating jobs since the recession, average wages had barely increased, and many Americans were working harder but struggling to get ahead. The order uses the President's authority to set terms for federal contracts.
The action represents the President's stated approach of acting independently through executive authority when he believes Congress won't act. As he put it in his remarks, he would use his "pen to take executive actions" wherever he could act on his own. The constitutional basis for this type of order—setting wage requirements for federal contractors—relates to the President's authority to manage how the executive branch does business, though the extent of such authority can be subject to debate.
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
This executive order ("Remarks on Signing an Executive Order Establishing a Minimum Wage for Contractors") restructures or establishes federal entities. The stated purpose: "Now, it's been just over 2 weeks since I delivered my State of the Union Address, and I said this year would be a year of action, and I meant it." The President has authority to manage the executive branch under Article II, including creating task forces, councils, and working groups within the White House. However, creating independent agencies with binding regulatory authority, or fundamentally restructuring congressionally created departments, typically requires legislative authorization.
The Reorganization Act historically provided a framework for executive reorganization subject to congressional review. Current reorganization authority is more limited. The constitutionality depends on whether this order creates White House advisory bodies (acceptable) or attempts to restructure agencies in ways that conflict with their enabling statutes (questionable).
Official Summary
Administration of Barack Obama, 2014 Remarks on Signing an Executive Order Establishing a Minimum Wage for Contractors February 12, 2014 The President. Thank you so much. Everybody, have a seat. Have a seat. Audience member . Awesome! The President . [ Laughter ] Well, welcome to the White House, everybody. I know you had to come here before you go buy some shovels and some salt. [ Laughter ] It sounds like we may get a little snow. But I very much appreciate everybody being here. I want to thank, first and foremost, the workers who are with me here this afternoon. [ Applause ] Hey! And I want to thank two champions for all hard-working Americans. We've got Secretary of Labor Tom Perez; he's in the house. Where is Tom? Right here. Tom is right here. I didn't know where he was. And we've got an outstanding Congressman—who's used to snow because he's from Minnesota—Congressman Keith Ellison. Now, it's been just over 2 weeks since I delivered my State of the Union Address, and I said this year would be a year of action, and I meant it. Over the past 14 days, I've ordered an ac