January 16, 2019

Warner & Kaine Introduce Bill To Pay Back Federal Contract Workers After Shutdown

WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine joined Senators Tina Smith (D-MN), Sherrod Brown (D-OH), Chris Van Hollen (D-MD), and Ben Cardin (D-MD) in introducing legislation to secure back pay for the federal contractor service employees who continue to go without pay during the government shutdown. The bill—the Fair Compensation for Low-Wage Contractor Employees Act—aims to help low-wage federal contractor employees—including janitorial, food, and security services workers—who have been furloughed or forced to accept reduced work hours as a result of the government shutdown.

“Thousands of people across the Commonwealth are out of a job right now because of President Trump’s unnecessary, destructive shutdown. Right now many low- and middle-wage federal contractors – whose paychecks often depend on the number of hours they work – are worrying about how they’ll afford to keep the lights on or pay their rent. Congress has already passed legislation to secure back pay for federal workers. Federal contractors – especially those who are already working paycheck to paycheck – deserve some peace of mind too. This important bill will ensure that federal service contractors, who work side-by-side with federal employees, get the pay they missed out on because of President Trump’s reckless shutdown,” Warner said

“Just like federal employees, federal contractors work hard to keep our government running. So many of these workers live paycheck-to-paycheck and this painful shutdown has meant that many of them can't afford to pay their bills. This legislation is an effort to ensure that these contractors who have been denied pay during a shutdown they had no role in causing receive the pay they deserve,” Kaine said.

The Fair Compensation for Low-Wage Contractor Employees Act would provide financial relief for eligible federal service contractors missing pay during the shutdown by:

  • Completely replacing missed wages for workers making less than $50,200 per year (twice the poverty level for a family of four.)
  • Compensating workers earning more than $50,200 per year up to the $50,200 threshold ($965 per week.)
  • Restoring paid leave for workers who were required by the contractor to use it.

The bill appropriates funding for federal agencies to adjust the price accordingly of any contracts impacted by the shutdown. By building on existing contract review and approval processes, the bill provides financial relief for lower-wage workers without creating new administrative or financial burdens for contractors. Eligible employees include those covered under the Service Contract Act (which governs federal service contracts) and the Davis-Bacon Act (which governs federally-funded construction projects). Although the Service Contract Act does not apply to “executive, administrative, or professional” employees, they would be eligible for back pay under the bill.

The bill is also supported by Senators Edward J. Markey (D-MA), Amy Klobuchar (D-MN), Elizabeth Warren (D-MA), Maggie Hassan (D-NH), Doug Jones (D-AL), Kamala Harris (D-CA), Tom Udall (D-NM), Tammy Duckworth (D-IL), Angus King (I-ME), and Martin Heinrich (D-NM).

Read a summary of the bill HERE.

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