Robert Besser
30 Sep 2023, 04:08 GMT+10
VICTORIA, Texas: This week, U.S. District Judge Drew Tipton in Victoria, Texas, ruled that President Joe Biden did not have the power to order government contractors to pay workers a US$15 an hour minimum wage.
He also blocked the plan from being adopted in Texas, Louisiana and Mississippi.
Tipton, an appointee of Republican former President Donald Trump, decided that because Biden's 2021 executive order potentially affects millions of workers and has "vast economic and political significance," only Congress had the power to adopt it.
He paused his decision for seven days to allow the Biden administration to file an appeal.
The White House has not responded to a request for comment.
As part of his strategy to prioritize blue-collar workers, the executive order from Biden, who is seeking re-election next year, was one of his pro-labor moves since becoming president.
The federal government spends hundreds of billions of dollars annually on contracts with private businesses, nonprofit entities, and state agencies for various goods and services.
Under federal law, the minimum wage is $7.25 an hour, but many states have set higher levels.
Four states and several cities have set a minimum wage of at least $15.
In 2022, the White House said that some 327,300 employees of federal contractors were paid less than $15 an hour, adding that raising their wages would cost employers $17 billion over 10 years.
A spokesperson for Mississippi's Republican Attorney-General Lynn Fitch said, "We are pleased the court reached the same conclusion we did, that Congress has not given the Biden administration authority to enact this burden on an already faltering economy through executive fiat."
In January, a federal judge in Arizona dismissed a similar challenge to Biden's executive order by five other Republican-led states. The states have appealed.
Get a daily dose of Mediterranean Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Mediterranean Times.
More InformationThe U.S. has supplied Israel with scores of BLU-109 bunker-buster bombs since October 7, the Wall Street Journal has reported, ...
HELSINKI, Finland: After Finland joined the North Atlantic Treaty Organization (NATO) earlier this year, hundreds of migrants from the Middle ...
CHISINAU, Moldova: Over the weekend, heavy snowfall and strong blizzards in Romania, Moldova and Bulgaria left one person dead and ...
DHAKA, Bangladesh - The European Union (EU) expressed hope on Wednesday that Bangladesh would hold democratic, credible, peaceful, and participatory ...
DUBLIN, Ireland - The government has admitted that it may not be able to accommodate all asylum seekers who arrive ...
Did you know that you can find cats at almost every fire station in Russia? So, what exactly do they ...
BOLOGNA, Italy: Due to fears of a collapse, local officials have secured the area around one of two 12th century ...
MUNICH, Germany: The heavy snow and icy conditions that hit Bavaria, Germany, canceled flights and long-distance trains out of Munich, ...
RALEIGH, North Carolina: After a decade of discussions and hesitations, North Carolina has expanded Medicaid coverage by offering government-funded health ...
The U.S. has supplied Israel with scores of BLU-109 bunker-buster bombs since October 7, the Wall Street Journal has reported, ...
WASHINGTON D.C.: This week, the Biden administration announced a proposal by the Environmental Protection Agency (EPA) that would require U.S. ...
TOKYO, Japan: Japan's space agency recently fell victim to a cyberattack, but reassuringly, the compromised information did not pertain to ...