Fair Pay for Federal Contractors Act of 2025
Fair Pay for Federal Contractors Act of 2025
Plain Language Summary
# Fair Pay for Federal Contractors Act of 2025 - Summary **What the bill would do:** This bill would require the federal government to reimburse private contractors for back pay they give to their employees if those workers lose income during a government shutdown. When federal agencies can't operate due to a budget lapse, contractors often have to stop work and their employees lose pay.
Under this bill, the government would adjust contract prices upward to cover the costs contractors incur when paying employees back for lost wages, reduced hours, or restoring paid time off that employees used during the shutdown. **Who it affects:** The bill primarily affects private companies that contract with the federal government and their employees. It would also impact federal agencies that oversee these contracts, as they would need to increase payments to contractors to cover the back pay costs. **Current status:** The bill (HR 5657) was introduced in the 119th Congress by Representative Ayanna Pressley (D-Massachusetts) and is currently in committee, meaning it hasn't been voted on by the full House yet.
CRS Official Summary
Fair Pay for Federal Contractors Act of 2025This bill provides back pay to employees of federal contractors who lost pay due to a lapse in appropriations (i.e., government shutdown) in FY2026.Specifically, the bill provides appropriations for federal agencies that are subject to a lapse in appropriations in FY2026 to adjust the price of contracts to compensate federal contractors for providing back pay to employees who were affected by the lapse in appropriations. The agencies must adjust the price of any contract for which the contractor stopped, suspended, delayed, or interrupted all or part of the work under the contract due to the lapse in appropriations. The price adjustment must compensate the contractor for reasonable costs incurred to (1) compensate employees who were furloughed or laid off, were not working, or experienced a reduction of hours or compensation due to the lapse in appropriations; or (2) restore paid leave taken by employees during the lapse in appropriations if the contractor required or permitted employees to use paid leave as a result of the lapse in appropriations.The maximum amount of weekly compensation of an employee for which an adjustment may be made under this bill may not exceed the lesser of (1) the employee's actual weekly compensation, or (2) $1,442 (or a lesser amount pro-rated for an employee who works less than 40 hours per week).The bill also requires the Office of Federal Procurement Policy to submit a report to Congress on the adjustments made under this bill.
Latest Action
Referred to the Committee on Appropriations, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.