WASHINGTON, Oct. 16 (UPI) -- Boeing has agreed to pay an $18 million to settle claims the company made false labor charges on its C-17 Globemaster contract with the U.S. Air Force.
The company is a regular contractor for the U.S. Air Force and other U.S. military branches, and was contracted for maintenance operations for the C-17 Globemaster transport aircraft. Following the contract, government officials alleged Boeing overcharged for labor costs, saying the company included extended breaks and lunch hours in the bill. Break times are not chargeable for defense contracts, according to the U.S. Department of Justice.