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 Raleigh 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 Raleigh Times.
More InformationNEW YORK, New York - Retreating bond yields and a higher-then-expected GDP reading for the third quarter boosted U.S. stocks ...
WASHINGTON D.C.: President Joe Biden invoked a Cold War-era act this week to boost investment in U.S. manufacturing of medicines ...
NEW DELHI, India: On November 24, the Economic Times (ET) reported that Tesla is ready to invest up to $2 ...
NEW YORK, New York - U.S. stocks closed in positive territory despite a volatile day Tuesday. Spending much time in ...
WASHINGTON D.C.: On November 24, the U.S. Food and Drug Administration (FDA) recalled three more brands of whole and pre-cut ...
DETROIT, Michigan: US electric vehicle (EV) sales are expected to reach a record of 9% of all passenger vehicles this ...
MARSHALL, Texas: In a lawsuit unsealed this week, Texas Attorney-General Ken Paxton said Pfizer and its supplier Tris Pharma provided ...
(Photo credit: Jamie Rhodes-USA TODAY Sports) Duke quarterback Riley Leonard, who missed the last four weeks of the regular season ...
(Photo credit: William Purnell-USA TODAY Sports) Creighton took a fierce beating in its last outing when an offense that topped ...
(Photo credit: Petre Thomas-USA TODAY Sports) Jaemyn Brakefield scored 25 points as Ole Miss remained undefeated with a 72-52 victory ...
(Photo credit: Petre Thomas-USA TODAY Sports) Jaemyn Brakefield scored 25 points as Ole Miss remained undefeated with a 72-52 victory ...
(Photo credit: Nick Wosika-USA TODAY Sports) Minnesota starting quarterback Athan Kaliakmanis intends to enter the transfer portal with two years ...