The Fair Pay for Federal Contractors Act of 2023 would require federal agencies to compensate private contractors for wages and benefits lost by their employees during government funding lapses. When contractors must suspend or stop work due to a shutdown, the bill would mandate that agencies increase contract payments to cover back pay for workers who were furloughed, laid off, had reduced hours, or were required to use paid leave instead of being paid. The law caps weekly compensation coverage at $1,442 per employee, adjusted for part-time workers, and applies to any lapse in appropriations beginning October 1, 2023, or later lapses during fiscal year 2024. Contractors would need to provide documentation of actual costs incurred to federal agencies, which must process these adjustments as soon as possible after the bill's enactment. The bill appropriates whatever funding is necessary through December 31, 2024, and requires a report to Congress within one year detailing how many contractor employees were affected and how much back compensation was provided.