On March 14, President Donald Trump reversed a series of executive orders issued by the previous administration, including executive order 14026, which increased the minimum salary to $ 15 per hour and was adjusted for annual inflation for private sector employees working in federal contracts from 2021.
Details about the new policy
The salary protections were designed to secure decent salaries for hired workers. Under the new policy change, private companies can reduce salaries for these employees without the regulation of the United States Department of Labor. The new minimum salary of $ 13.30 per hour, based on a rule of the oldest Obama time, has a reduction of up to 25%, according to the White House and the Center for North -American Progress.
Fair wages for federal government workers
The Trump administration said that the measure is “necessary to advance the policy of the United States to restore common sense to the federal government and to trigger the potential of North -American citizens.”
The Federal Government has used its recruitment system to establish fair salaries and working conditions for private sector workers who provide goods and services, including military uniforms and office maintenance, which increases the standards for minimum salary policies per CAP.
According to The digestion of human resources, It is estimated that from 390,000 to 600,000 private sector workers will be affected by a 25% reduction in industries such as construction, concessions, federal lands and other government areas. Private companies with existing contracts will maintain the current minimum wage until these agreements are over, but workers in the future Federal contracts The reduced rate of $ 13.30 per hour will be paid.
Federal minimum wage is still $ 7.25 per hour since it was promulgated on July 24, 2009 Mourning. While the new salary standards are higher, many federal contractual workers will still feel the impact of the cut, as the previous minimum of $ 17.75 provided better salary and encouraged more people to apply for government positions.
According to The Baltimore bannerTrump’s federal workers’ cuts could affect the two richest black counties of the nation with the median revenue of the household more than $ 100,000: Charles Counties and Prince George, part of the Southern Maryland region.
“Income has decreased significantly,” said Herb Banks, owner of the Copper Compass Distillery in the Charles County Waldorf area.
According to Baltimore Banner and the United States census, the Federal Government has about 1 in 5 black workers in the area.
“This could have devastating effects on these communities,” The Outlet told Duke University Economist William A. “Sandy” in The Outlet.
