These workers may never receive back pay after shutdown
While a record-long partial government shutdown has been at least temporarily resolved, one sect of workers lost out on money they may never recoup even as operations in the nation’s capital resume at full capacity.
Hundreds of thousands of federal workers are set to receive full back pay beginning this week, however others may not be as fortunate.
About one million low-paid government contractors are not legally entitled to back pay, including people who cook in and clean federal buildings. These workers can earn as little as $450 per week, according to The Washington Post.
There is a Democratic-sponsored bill in Congress to repay contractors – called the Fair Compensation for Low-Wage Contractor Employees Act. It is unclear whether it will pass.
During the 16-day 2013 shutdown, 1,200 of these workers never received makeup pay, the Post reported.
In addition to the pressure put on workers, some small businesses are also feeling the pain.
The U.S. Chamber of Commerce released data on Thursday alleging that small business contractors lost out on more than $2.3 billion as a result of the shutdown. Some companies haven’t been paid for jobs completed in prior months – and for small firms that only do business for one of these agencies the impact is significant.
In fiscal 2018, the government spent a collective $29.1 billion on contracts with more than 41,000 small businesses around the country.
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There could be more trouble ahead for these businesses and workers. A continuing resolution will fund the government fully through Feb. 15, at which time the government faces the prospect of yet another partial shutdown.
Nine federal agencies were unfunded for 35 days. The Congressional Budget Office estimated the shutdown cost the U.S. economy $3 billion in permanent losses.