-By Warner Todd Huston
Employees, whether unionized or not, who work for companies that have government contracts make far more per hour than employees who do similar jobs in the same area, a new study finds. This fact shows that government is essentially breaking its compensation own law.
The Service Contract Act of 1965 maintains that employees working for companies with government contracts must make the prevailing wage for their job in the area in which they work.
That means that if a carpet-layer in Peoria, Illinois makes $10.27 per hour, then any company that lays carpet for the government must pay their carpet-layers $10.27 per hour. Seems fair enough, right?
But the study shows that this isn’t happening. These government contractors aren’t making the prevailing wage. In fact, they are making far more than the prevailing wage! And all at the expense to the taxpayers, naturally.
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Breaking the Law: Pay Higher for Government Contractors Than Other Workers”