H.R. 678 – Fair Compensation for Low-Wage Contractor Employees Act of 2019

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Updated April 14, 2026 at 12:35 AM UTC

The Fair Compensation for Low-Wage Contractor Employees Act of 2019 directs federal agencies that faced a lapse in appropriations to adjust contract prices so that low‑wage contractor workers who were furloughed, laid off, had reduced hours or pay, or were forced to use paid leave receive back pay at their normal rate. Adjustments must be made as soon as practicable after the shutdown ends and are capped at the employee’s actual weekly wage or $965, whichever is lower. The law applies to employees of government contractors defined as service employees or laborers/mechanics under existing statutes.

Key Provisions

Agencies must increase contract prices to cover back‑pay for eligible contractor employees affected by a shutdown.
Back‑pay covers wages lost due to furloughs, layoffs, reduced hours, reduced pay, or forced use of paid leave during the lapse in appropriations.
The weekly compensation covered cannot exceed the employee’s actual weekly wage or $965, whichever is lower.
Adjustments must be made promptly after the lapse in appropriations ends.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the Committee on Appropriations, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Appropriations Committee

January 17, 2019

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HouseIntro Referral

Introduced in House

January 17, 2019

HouseIntro Referral

Referred to the Committee on Appropriations, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Appropriations Committee

January 17, 2019

Bill Text

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Introduced in HouseIssued January 17, 2019

I

116th CONGRESS

1st Session

H. R. 678

IN THE HOUSE OF REPRESENTATIVES

January 17, 2019

Ms. Pressley (for herself, Ms. Norton, Mr. Beyer, Ms. Schakowsky, Ms. Omar, Mr. Scott of Virginia, Mr. Sarbanes, Mrs. Watson Coleman, Mr. Luján, Ms. Moore, Ms. Bonamici, Mr. Kennedy, Mr. Pocan, Ms. Tlaib, Ms. Lee of California, Ms. Ocasio-Cortez, Mr. Nadler, Ms. Jayapal, Mrs. Trahan, Mr. Sires, Mr. Connolly, and Mr. Trone) introduced the following bill; which was referred to the Committee on Appropriations, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide back pay to low-wage contractor employees, and for other purposes.

1.

Short title

This Act may be cited as the Fair Compensation for Low-Wage Contractor Employees Act of 2019.

2.

Appropriation

There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2019, such sums as may be necessary for each Federal agency subject to the lapse in appropriations that began on or about December 22, 2018, for adjustments in the price of contracts of such agency under section 3.

3.

Back compensation for low-wage employees of Government contractors in connection with the lapse in appropriations

(a)

In general

Each Federal agency subject to the lapse in appropriations that began on or about December 22, 2018, shall adjust the price of any contract of such agency for which the contractor was ordered to suspend, delay, or interrupt all or part of the work of such contract, or stop all or any part of the work called for in such contract, as a result of the lapse in appropriations to compensate the contractor for reasonable costs incurred—

(1)

to provide compensation, at an employee’s standard rate of compensation, to any employee who was furloughed or laid off, or who was not working, who experienced a reduction of hours, or who experienced a reduction in compensation, as a result of the lapse in appropriations (for the period of the lapse); or

(2)

to restore paid leave taken by any employee during the lapse in appropriations, if the contractor required employees to use paid leave as a result of the lapse in appropriations.

(b)

Limitation on amount of weekly compensation covered by adjustment

The maximum amount of weekly compensation of an employee for which an adjustment may be made under subsection (a) may not exceed the lesser of—

(1)

the employee's actual weekly compensation; or

(2)

$965.

(c)

Timing of adjustments

The adjustments required by subsection (a) shall be made as soon as practicable after the end of the lapse in appropriations described in that subsection.

(d)

Definitions

In this section:

(1)

The term compensation has the meaning given that term in section 6701 of title 41, United States Code.

(2)

The term employee means the following:

(A)

A service employee as that term is defined in section 6701(3) of title 41, United States Code, except that the term also includes service employees described in subparagraph (C) of that section notwithstanding that subparagraph.

(B)

A laborer or mechanic covered by section 3142 of title 40, United States Code.