New Rule Expands Salary Cap For Defense Contractors

Law360, Chicago (June 26, 2013, 5:49 PM EDT) -- The cap on the amount defense contractors can be reimbursed by the government for executives’ salaries has been expanded to apply to all of their employees, according to an interim rule published Wednesday in the Federal Register.

Currently, the top-five executives at all government contractors are subject to the $763,029 cap, known as the “executive compensation benchmark.” The new rule expands the cap to cover all employees of contractors working for the U.S. Department of Defense, NASA and the Coast Guard.

The rule implements a provision...
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