President Obama gestures during a speech on education on Feb. 14, 2013, ... more >General Dynamics would have to cut 9,500 employees, which would cost the company $72 million.
The White House has said each government agency will pay the penalties and legal fees for any contractor who are sued.
That means the Defense Department could be looking at a $412 million bill for back pay, according to Ms. Furchtgott-Roth, plus more than $100 million in benefits — and that’s using a conservative estimate. A higher estimate has the federal government’s tab up closer to $1 billion.
This leaves defense contractors with a tough decision: “They can break the law and keep the White House happy, or follow the law and annoy their major customer,” Ms. Furchtgott-Roth said.
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Tim Devaney is a national reporter who covers business and international trade for The Washington Times. Previously, he worked for the Detroit News, Grand Rapids Press, Portland Press Herald and Bangor Daily News. Tim can be reached at tdevaney@washingtontimes.com.
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