S. 162Senate116th Congress (2019-2021)In Committee

Fair Compensation for Low-Wage Contractor Employees Act of 2019

Sponsored by Tina SmithSen. Tina Smith (D-MN)
Introduced January 16, 2019

AI-Generated Summary

Updated April 14, 2026 at 12:28 AM UTC

The Fair Compensation for Low‑Wage Contractor Employees Act of 2019 requires federal agencies that were affected by the December 2018 lapse in appropriations (the government shutdown) to provide back pay to low‑wage workers employed by contractors. The bill directs agencies to adjust contract prices so that furloughed, laid‑off, or otherwise reduced‑hour employees receive compensation at their normal rate, and to restore any paid leave taken during the shutdown. The measure applies to all federal agencies that experienced the lapse and uses Treasury funds to cover the cost.

Key Provisions

  • Appropriates any necessary Treasury funds for FY 2019 to cover adjustments for agencies affected by the December 2018 lapse in appropriations.
  • Requires each affected federal agency to adjust the price of contracts where work was suspended, delayed, or interrupted because of the lapse, to compensate employees at their standard wage rate for lost wages or reduced hours.
  • Limits the weekly compensation that can be covered by the adjustment to the lesser of the employee’s actual weekly pay or $965.
  • Mandates that the required adjustments be made as soon as practicable after the lapse ends.
  • Defines “compensation” and “employee” to include service employees, laborers, and mechanics as specified in existing U.S. Code sections.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

January 16, 2019

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SenateIntro Referral

Introduced in Senate

January 16, 2019

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

January 16, 2019

Floor Debate

24 members

What members said about S. 162 on the floor

11 Republicans13 Democrats
Thomas R. Carper
Sen. Thomas R. CarperD-DE · Feb 6, 2019

Mr. President, I am delighted to follow on the floor the chairman of the Environment and Public Works Committee, who is now hastening for the exit before I can say nice things about him. I want to…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Feb 6, 2019

Mr. President, I pay tribute to an extraordinary American. I stand here today to pay my respects to a World War II veteran who dedicated his life to public service. After serving his country in…

Dan Sullivan
Sen. Dan SullivanR-AK · Feb 6, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, a number of us have been coming to the floor for quite some time now, talking about challenges…

Jeff Merkley
Sen. Jeff MerkleyD-OR · Feb 6, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I want to begin by recognizing two members of my team who will be leaving at the end of this…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Feb 6, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, last night, most of America was tuned in to the President's State of the Union Address, and I…

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John Cornyn
Sen. John CornynR-TX · Feb 6, 2019

Mr. President, I never cease to be amazed how the politics here inside the beltway remind me of two ships passing in the night, where we can all be looking at exactly the same thing and describe it…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Feb 6, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent that I be allowed to speak as if in morning business for up to 15…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Feb 6, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, last night President Trump had the opportunity to bring our parties together and offer the…

David Perdue
Sen. David PerdueR-GA · Feb 6, 2019

Mr. President, it is my honor to join my colleagues, including the Presiding Officer, in this brief colloquy about the current economic results that the President's agenda is achieving. I would like…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Feb 6, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, we are at a point we have been hoping to get to for some time, which is debate on S. 47, the…

Joe Manchin III
Sen. Joe Manchin IIID-WV · Feb 6, 2019

Madam President, first, I am so pleased to work with my good friend Chairman Murkowski on something she has worked on for quite some time with Senator Cantwell. Taking up this new position, I want to…

John Barrasso
Sen. John BarrassoR-WY · Feb 6, 2019

Mr. President, today U.S. taxpayers are subsidizing the electric car industry. The cost to these taxpayers is billions of dollars, and the subsidies have lasted now for nearly 30 years. In 2008,…

Martin Heinrich
Sen. Martin HeinrichD-NM · Feb 6, 2019

Mr. President, I start by thanking Senator Tom Udall, our senior Senator from New Mexico, for the incredible amount of work and really the years of advocacy and attention that have gone into many of…

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Tom Udall
Sen. Tom UdallD-NM · Feb 6, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, thank you for the recognition. I rise to express my strong support for the bipartisan public…

Tina Smith
Sen. Tina SmithD-MN · Feb 6, 2019

Madam President, last night President Trump delivered the State of the Union Address, and he talked about a lot of issues, including immigration and national security, healthcare, and prescription…

Roy Blunt
Sen. Roy BluntR-MO · Feb 6, 2019

Mr. President, I want to talk about the bill that we are considering this week. This is a bill that for sportsmen and for those who are interested in public lands is going to have a big impact. It…

Jon Tester
Sen. Jon TesterD-MT · Feb 6, 2019

Today is a special day. Today is a culmination of years of work. I mean that. We were literally on the floor 7 or 8 years ago with a bill similar to this one that did not get across the finish line.…

John Thune
Sen. John ThuneR-SD · Feb 6, 2019

Mr. President, in last night's State of the Union Address, the President highlighted the strength of the economy. After years of stagnation under the Obama administration, our economy has come…

Robert P. Casey Jr.
Sen. Robert P. Casey Jr.D-PA · Feb 6, 2019

Mr. President, I rise to speak about the same topic that my colleague from Maryland and my colleague from Minnesota just spoke of. I will start by highlighting the legislation that Senator Smith from…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Feb 6, 2019

Madam President, first of all, I want to thank Senator Smith for her leadership on this issue. This involves 1.2 million contract workers who could very well not only lose their pay from the 35 days…

Mike Braun
Sen. Mike BraunR-IN · Feb 6, 2019

Mr. President, I rise today in one of the hottest economic environments our Nation has ever seen. The last time American unemployment was this low, the Beatles were at the top of the charts and I was…

Joni Ernst
Sen. Joni ErnstR-IA · Feb 6, 2019

Mr. President, today I rise to speak on the strength of the U.S. economy, and I would like to thank my colleagues who have joined me here on the floor to address this very important topic. As…

Chris Van Hollen
Sen. Chris Van HollenD-MD · Feb 6, 2019

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I thank the Senator from Minnesota, Senator Smith, for organizing this discussion on the…

Jerry Moran
Sen. Jerry MoranR-KS · Feb 6, 2019

Madam President, I rise today to express my dissatisfaction and disappointment over what is a life-and-death matter for many Americans. My disappointment is about the actions recently taken by the…

Bill Text

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Introduced in SenateIssued January 16, 2019

II

116th CONGRESS

1st Session

S. 162

IN THE SENATE OF THE UNITED STATES

January 16, 2019

Ms. Smith (for herself, Mr. Brown, Mr. Van Hollen, Mr. Warner, Mr. Cardin, Mr. Kaine, Mr. Markey, Ms. Klobuchar, Ms. Warren, Ms. Hassan, Mr. Jones, Ms. Harris, Mr. Udall, Mr. Heinrich, Ms. Duckworth, Mr. King, Ms. Hirono, Mr. Menendez, Mr. Schatz, Mr. Tester, Mrs. Feinstein, Mr. Whitehouse, and Mr. Blumenthal) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

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.