Fair Pay for Federal Contractors Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- 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 lost wages due to government shutdowns in fiscal year 2026. It allows federal agencies to adjust contract prices to compensate contractors for covering employee costs related to furloughs, layoffs, or reduced work hours, or for restoring paid leave used during the shutdown. The maximum compensation per employee is capped at $1,442 weekly, and the Office of Federal Procurement Policy will report on the adjustments made to Congress.
Key provisions
- Federal agencies can adjust contract prices to compensate contractors for employee costs related to shutdowns.
- Contractors must provide evidence of incurred costs to the relevant federal agency.
- Back pay cannot exceed the employee's weekly compensation or $1,442.
- The Office of Federal Procurement Policy will submit a report to Congress detailing adjustments.
- The report will include data on affected employees, compensation provided, and paid leave restoration.
- Adjustments are to be made as soon as practicable after the bill’s enactment.
- The bill defines key terms such as ‘employee’ and ‘compensation’ for clarity.
- The bill specifies the committees of Congress to receive the report.
Who is affected
- Federal contractors
- Federal employees
- Federal agencies
- Contractor employees
- Subcontractors
Bill text
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Sponsors
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