Fair Pay for Federal Contractors Act of 2025 provides back pay to federal contractors affected by lapses in appropriations.
The Fair Pay for Federal Contractors Act of 2025 requires federal agencies to adjust the price of contracts for contractors whose work was suspended, delayed, or interrupted due to lapses in appropriations. This adjustment compensates contractors for reasonable costs incurred, including back pay for furloughed or laid-off employees and restoration of used paid leave. The maximum weekly compensation for which an adjustment may be made is the lesser of the employee's actual weekly compensation or $1,442.
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