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 Knoxville 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 Knoxville Times.
More InformationBANGKOK, Thailand: This week, Thailand's Deputy Finance Minister Krisada Chinavicharana said after a weaker-than-expected third quarter, the country will downgrade ...
BEIJING, China: The country's commerce ministry said that during a meeting with Vietnamese Prime Minister Pham Minh Chinh in Ho ...
NEW 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 ...
While Secretary of State Anthony Blinken has been frantically shuttling around the Middle East trying to stop the Israeli coflict ...
LESBOS, Greece: Greek authorities said a cargo ship sank off the island of Lesbos over the weekend during a storm, ...
COLUMBUS, Ohio: To stop the spread of bird flu, more than 1.3 million chickens will be killed on Ohio's Union ...
In a devastating turn of events, Israel's war on Gaza, sparked by Hamas's unprecedented attacks on October 7, has resulted ...
BATON ROUGE, Louisiana: In a Louisiana election where more than 43,000 people cast their ballots, a candidate for parish sheriff ...
LIVINGSTON, Kentucky: This week, railroad operator CSX said a train derailment involving 16 cars, two of which spilled molten sulfur ...