Fair Pay for Federal Contractors Act of 2025

This bill would give back pay to employees of companies that have contracts with the federal government if those employees lost pay during a government shutdown in fiscal year 2026. When a government shutdown happens and contractors have to stop or reduce their work, federal agencies would be allowed to increase the contract prices to help contractors pay back their affected employees. The back pay would cover employees who were furloughed, laid off, had their hours cut, or had to use their own paid leave time because of the shutdown. The maximum weekly back pay per employee would be capped at $1,442 or the employee's actual weekly pay, whichever is less.

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