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September 25, 2013

The Honorable Barack ObamaPresident of the United StatesThe White House1600 Pennsylvania Avenue NWWashington, DC 20500

Dear Mr. President:

We are encouraged by your statements during your recent speech in Galesburg, Illinoisabout growing income inequality in which you said, “That’s why reversing these trends must beWashington’s highest priority. It’s certainly my highest priority... But I will not allow gridlock,inaction, or willful indifference to get in our way. Whatever executive authority I have to helpthe middle class, I’ll use it.” We stand ready to support an executive order that would help putthe middle class within reach for two million workers whose jobs are currently funded by thefederal government.

As you know, real wages have been stagnating for working and middle-class families forover 30 years. The prevailing wage protections put in place over the three decades from the1930s to the 1960s now cover only 2O°~ of federally funded private-sector work; even forcovered workers, wage rates can be little higher than the federal minimum.

According to a recent study by Demos, the federal government now funds over twomillion jobs paying under twelve dollars per hour more than Walmart and McDonald’scombined in such industries as food, apparel, trucking, and auxiliary healthcare.11~ In anotherreport on the federal-contract workforce, the National Employment Law Project (NELP)interviewed over 500 contract workers and found that 74% are paid less than $10 per hour and58° o receive no benefits from their employer.’21

Low-wage federal contract workers are also subject to serious breaches of employmentand occupational safety law. Offending employers frequently continue to receive continuedcontract awards. A 2010 GAO report found 25 of the 50 largest assessments for unpaid wagesand 8 of the 50 largest OSHA penalties imposed by the Department of Labor from 2005 through2009 were against companies that received federal contracts in 2009. [3] NELP ‘ s federal

Underwriting Bad Jobs: How Our Tax Dollars are Funding Low-Wage Work and Fueling Inequality, Demos,May 2013.[21 Taking the Low Road: How the Federal Government Promotes Poverty- Wage Jobs Through Its Contracting

Practices, National Employment Law Project, July 2013.13) Assessments and Citations ofFederal Labor Law Violations by Selected Federal Contractors, GAO- 10-1033,

Sep 17, 2010. http: www.gao.gov assets 310 309785.pdf.

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contracting report found that over one-in-five of workers contacted reported suffering violationsof federal wage-and-hour law, including sub-minimum wage rates, non-payment of overtimepremiums, and off-the-clock work.

Reversing the trends like these that help drive income inequality will require aggressiveand creative use of every legislative and non-legislative tool at the U.S. government’s disposal.With introduction of the Fair Minimum Wage Act of 2013 and other legislation that wouldupdate the minimum wage, Democrats in Congress have responded. However, in the face ofcontinued Republican opposition, your executive authority can provide relief.

We urge you to issue an executive order to raise wage standards, safeguard the legalrights and safety and provide labor stability for the low-wage workers on whom these federalagencies rely to fulfill their mission. We also urge the creation of a structure that will monitorimplementation and compliance with these orders. Addressing the rights and standards of thisworkforce would be a major first step in reversing the long-term decline in living standards andworking conditions for America’s low-wage workers. We look forward to working with you.

Sincerely,

Li.Rep.R.’IM.GrijalvaCo-Chair of Progressive C. us

Rep. Corrine BrownMember of Congress

Rep. Michael B. CapuanoMember of ress

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