Jan. 28 (Bloomberg) — President Barack Obama will raise the minimum wage to $10.10 an hour for federal contractors hired in the future, an initiative to be unveiled tonight in his State of the Union address.

Obama will issue an Executive Order covering contract workers — including janitors and construction workers — and repeat his call to reluctant lawmakers to increase the minimum hourly wage for all employed Americans.

"Nobody who works full-time and works hard at their job should live in poverty; we think $10.10 an hour will allow them to do that," Denis McDonough, chief of staff to the president, said on the "CBS This Morning" program.

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