AlterNet: Overkill in New Orleans: "Officially, Blackwater says its forces are in New Orleans to 'join the Hurricane relief effort.'...But what has not been publicly acknowledged is the claim, made to us by two Blackwater mercenaries, that they are actually engaged in general law enforcement activities including 'securing neighborhoods' and 'confronting criminals.'...They told us they not only had authority to make arrests but also to use lethal force.
...Later we overheard him on his cell phone complaining that Blackwater was only paying $350 a day plus per diem."

Meanwhile, New Orleans police officers earn a starting salary of $32,625 per year including uniform allowance; Louisiana State Police earn a starting salary of $3050 per month - each after completion of a year in the Police Academy.

So, I guess they didn't suspend the prevailing wage law for mercenaries.