The Fair Pay for Federal Contractors Act of 2023 requires federal agencies to compensate private contractors for costs they incurred when contractor employees were furloughed, laid off, or had reduced hours during government funding lapses in fiscal years 2023 and 2024. The bill directs agencies to adjust contract prices to reimburse contractors for wages paid to affected employees during the shutdown period, up to a maximum weekly compensation of $1,442 per employee, as well as for any paid leave that employees were required to use. Federal contractors seeking reimbursement must provide documentation of actual costs incurred to the relevant agency. The bill appropriates whatever funds are necessary to implement these adjustments, with those funds available through December 31, 2024, and requires a report to Congress within one year detailing how many contractor employees were affected and how many received back pay.
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