November 9. 2011 | Rebecca Kehoe
Have Congress and the White House Heard the "Occupy" Protestors?
The Occupy Wall Street protestors have been objecting to social and economic inequality, corporate greed, and corporate influence over the Government. It appears that Congress and the White House are listening. Both the U.S. House of Representatives (H.R. 1540) and the U.S. Senate (S. 1253) have created versions of the National Defense Authorization Act (NDAA) for 2012 that contain provisions that would extend the coverage of the current Executive Compensation Cap to ALL CONTRACTOR EMPLOYEES. Actually, the House version refers to “any individual performing under the covered contract” and the Senate version to “all company executives and managers,” but it’s a difference without a distinction. Either one would likely be interpreted to cover both direct and allocated labor costs. You’re probably thinking that it still won’t affect most of the Federal Contractors and, at the current cap of $693,951, it almost certainly wouldn’t. The problem is President Obama’s economic proposal of September 19, 2011, would tie the compensation cap to the salary of a Cabinet Secretary (Executive Schedule Level I), which is currently $200,000. That will affect a lot of people and companies.
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