Fair Pay for Federal Contractors Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Fair Pay for Federal Contractors Act of 2025 aims to provide back pay to employees of federal contractors who experienced reduced pay or lost work due to government shutdowns. It allows federal agencies to adjust contract prices to compensate contractors for covering employee costs, such as lost wages or paid leave used during the shutdown. The maximum compensation per employee is capped at either their actual weekly wage or $1,442. The Office of Federal Procurement Policy will submit a report to Congress detailing the adjustments made.
Key provisions
- Federal agencies can adjust contract prices to compensate contractors for employee costs related to shutdowns.
- Contractors can be reimbursed for compensating furloughed, laid-off, or reduced-hours employees.
- Contractors can be reimbursed for restoring paid leave taken by employees during the shutdown.
- The maximum weekly compensation covered by adjustments is limited to the employee's actual weekly wage or $1,442.
- The Office of Federal Procurement Policy must submit a report to Congress on the adjustments made.
- The report will detail the number of employees affected, compensation provided, and leave restored.
- Adjustments must be made as soon as practicable after the bill’s enactment.
- The bill defines key terms such as ‘employee’ and ‘compensation’ for clarity.
Who is affected
- Federal Contractors
- Federal Government Agencies
Bill text
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Sponsors
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