DOD, GSA, and NASA Apply Contractor Compensation Cap to Broader Group of Contractor Employees

July 8, 2013

DOD, GSA, and NASA Apply Contractor Compensation Cap to Broader Group of Contractor Employees

On June 26, 2013, DOD, GSA, and NASA issued an interim rule extending the existing executive compensation cap to all employees of contractors working for DOD, NASA, and the U.S. Coast Guard. Previously, the cap only applied to the five most highly compensated employees in management positions at each home office and each segment of the contractor. Under both the interim rule and the previous rule, the salary cap does not limit a contractor employee’s total compensation; just the amount that can be reimbursed under government contracts. The interim rule became effective June 26, 2013. Written comments on the interim rule should be submitted on or by August 26, 2013. (78 Fed. Reg. 38535, 6/26/13.)






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