A federal judge in Texas has ruled that President Joe Biden lacked the power to order U.S. government contractors to pay workers a minimum wage of $15 an hour, and blocked the plan from being enforced in three states.
deemed lacking clear congressional authorization. Tipton also found that Biden ran afoul of a federal law called the Procurement Act, which governs the way goods and services are purchased by federal agencies.The executive order from Biden, who is seeking re-election next year, was one of his pro-labor moves since becoming president as he makes supporting blue-collar workers a priority.
The minimum wage under federal law is $7.25 an hour, though many states set higher minimums. Four states and several cities have a minimum wage of at least $15. The administration argued that the Procurement Act gives the president broad powers to implement policies aimed at fostering an efficient contracting system. But Tipton agreed with the states that a president's authority was limited to supervising the buying and selling of goods. Only Congress can set minimum wages and adopt other employment policies unless it specifically grants those powers to federal agencies, Tipton wrote.
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