Federal RuleAug 21
62
DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-s-2963119th CongressWALLET
Fair Pay for Federal Contractors Act of 2025
Sponsored By: Senator Smith, Tina [D-MN]
Introduced
Summary
Guarantees back pay for contractor employees after federal funding lapses. The bill would let agencies adjust contract prices to cover reasonable costs contractors incur to provide back pay and to restore paid leave when work is suspended, delayed, or interrupted by an appropriation lapse.
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- Contractors would be able to seek price adjustments from affected agencies to pay employees or cover related costs. Adjustments may be made regardless of existing contract terms and must reflect costs actually incurred.
- Contract employees would be eligible for compensation at their standard rate for periods they were furloughed, laid off, had reduced hours, or faced reduced pay during a lapse. Weekly pay eligible is capped at the lesser of actual weekly pay or $1,442 and is prorated for employees working under 40 hours.
- Agencies would have authority to draw "such sums as may be necessary" from Treasury for fiscal year 2026 for these adjustments, with those funds available until December 31, 2026. The Office of Federal Procurement Policy would report within one year on agencies that made adjustments and counts of affected employees.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Back pay for contractor employees
If enacted, agencies would adjust contract prices so contractors can reimburse workers for pay lost during a funding lapse. Contractors could be paid to cover (A) employees' normal pay for weeks furloughed, laid off, not working, or with reduced hours or pay because of the lapse, and (B) restoration of paid leave if the contractor required or allowed leave during the lapse. The bill would let an agency make the adjustment even if the contract otherwise forbids such costs. Adjustments would be limited to costs actually incurred and must be supported with evidence to the agency head, who would consult the Office of Federal Procurement Policy. The weekly cap is the lesser of an employee's actual weekly pay or $1,442, prorated if the employee usually works under 40 hours. Adjustments must be made as soon as practicable after enactment. The bill also defines which workers count as employees and which pay counts as compensation for these rules.
Government funding for contractor back-pay
If enacted, the bill would authorize and appropriate sums from the Treasury to cover contract price adjustments that reimburse contractors for back-pay costs. It would direct that amounts necessary for the lapse that began about October 1, 2025 and for any lapse during fiscal year 2026 be available. Those funds would be available until December 31, 2026. Section 4 also authorizes appropriations as may be necessary for each agency affected by a lapse.
Sponsors & CoSponsors
Sponsor
Smith, Tina [D-MN]
MN • D
Cosponsors
Sen. Kaine, Tim [D-VA]
VA • D
Sponsored 10/1/2025
Sen. Warner, Mark R. [D-VA]
VA • D
Sponsored 10/1/2025
Sen. Van Hollen, Chris [D-MD]
MD • D
Sponsored 10/1/2025
Sen. Alsobrooks, Angela D. [D-MD]
MD • D
Sponsored 10/1/2025
Sen. Padilla, Alex [D-CA]
CA • D
Sponsored 10/1/2025
Sen. Duckworth, Tammy [D-IL]
IL • D
Sponsored 10/1/2025
Sen. Durbin, Richard J. [D-IL]
IL • D
Sponsored 10/1/2025
Sen. Baldwin, Tammy [D-WI]
WI • D
Sponsored 10/1/2025
Sen. Warren, Elizabeth [D-MA]
MA • D
Sponsored 10/1/2025
Sen. Heinrich, Martin [D-NM]
NM • D
Sponsored 10/1/2025
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 10/1/2025
Sen. Markey, Edward J. [D-MA]
MA • D
Sponsored 10/1/2025
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 10/1/2025
Sen. Rosen, Jacky [D-NV]
NV • D
Sponsored 10/1/2025
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 10/1/2025
Sen. Klobuchar, Amy [D-MN]
MN • D
Sponsored 10/1/2025
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 10/1/2025
Sen. Whitehouse, Sheldon [D-RI]
RI • D
Sponsored 10/1/2025
Sen. Wyden, Ron [D-OR]
OR • D
Sponsored 10/1/2025
Sen. Schatz, Brian [D-HI]
HI • D
Sponsored 10/1/2025
Sen. Gillibrand, Kirsten E. [D-NY]
NY • D
Sponsored 10/1/2025
Sen. Fetterman, John [D-PA]
PA • D
Sponsored 10/1/2025
Sen. Cortez Masto, Catherine [D-NV]
NV • D
Sponsored 10/1/2025
Sen. Gallego, Ruben [D-AZ]
AZ • D
Sponsored 10/1/2025
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 10/1/2025
Sen. Luján, Ben Ray [D-NM]
NM • D
Sponsored 10/1/2025
Sen. King, Angus S., Jr. [I-ME]
ME • I
Sponsored 10/1/2025
Sen. Kim, Andy [D-NJ]
NJ • D
Sponsored 10/1/2025
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 10/1/2025
Sen. Kelly, Mark [D-AZ]
AZ • D
Sponsored 10/1/2025
Sen. Slotkin, Elissa [D-MI]
MI • D
Sponsored 10/3/2025
Sen. Schiff, Adam B. [D-CA]
CA • D
Sponsored 10/1/2025
Sen. Blunt Rochester, Lisa [D-DE]
DE • D
Sponsored 10/1/2025
Sen. Murphy, Christopher [D-CT]
CT • D
Sponsored 10/28/2025
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 11/3/2025
Roll Call Votes
No roll call votes available for this bill.
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