Back Pay for Federal Contractors' Employees During Government Shutdowns
This Act ensures that employees of federal contractors receive back pay if their work was suspended or interrupted due to a government shutdown. This provides financial security for thousands of workers who might otherwise lose income when federal agencies lack funding. Federal agencies must adjust contract prices to reimburse contractors for these back pay costs and for restoring any paid leave employees were forced to use.
Key points
Financial Protection: Employees of federal contractors who were furloughed, laid off, or had reduced hours due to a government shutdown will receive full back compensation.
Paid Leave Restoration: If employees were required or permitted to use paid leave during the shutdown, the contractor must restore that leave.
Compensation Cap: Weekly compensation covered by the adjustment is limited to the lesser of the employee's actual weekly pay or $1,442 (prorated for part-time work).
Agency Obligation: Federal agencies must adjust contract prices to cover the reasonable costs incurred by contractors for providing this back pay.
Expired
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