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This employer to the wages and benefits provided for

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this employer to the wages and benefits provided for in a union contract entered into by a prior contractor. This applies to contracts where the principle purpose of the contract is to furnish services through the use of service employees. There is an exemption for executives or professional employees who meet certain federal guidelines (United States Department of Labor, 2009). Again, this is in contrast to other non-federal contractors who again, are bound by state law and the Fair Labor Standards Act, which requires employees to pay at least minimum wage and basic benefits. Almost all federal compensation/wage legislation carry some sort of penalty for failure to comply. It would be very important that this company analyze what types of jobs they are doing and which federal legislation applies to them. This would help prevent incurring federal penalties for violations. References
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BioTech Company 4 Department of Labor. (2009). Employment law guide: Prevailing wages in construction contracts . Retrieved from http://www.dol.gov/compliance/guide/dbra.htm United States Department of Labor. (2009). Employment law guide: Prevailing wages in service contracts . Retrieved from http://www.dol.gov/compliance/guide/sca.htm
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