H.R. 5628: Pay Workers What They’ve Earned Act

This bill, titled the Pay Workers What They’ve Earned Act, seeks to provide financial assistance to individuals affected by government shutdowns. It amends existing legislation to ensure that federal employees, contractors, and relevant state employees can be reimbursed for certain costs incurred during these shutdowns. Below are the key components of the bill:

1. Definition of Covered Employees

The bill defines covered employees as:

• Any employee of the United States Government or a District of Columbia public employer who is furloughed due to a lapse in government funding.
• Any excepted employee who is required to work despite the lack of funding.
• Any contractor with the federal government (or their employees) who is placed on unpaid leave because of a government shutdown.

2. Understanding Shutdown Costs

Shutdown costs are described as any expenses incurred as a direct result of a government shutdown. This includes:

• Fees and fines related to loan payments, credit card bills, and similar obligations that the employee cannot meet due to lost wages during the shutdown.
• Any additional financial burdens directly tied to the employee’s inability to receive their regular salary.

3. Payment Timing

• For a government shutdown starting on or around October 1, 2025, covered employees will be compensated for their shutdown costs as soon as possible after the law is enacted, contingent upon the passing of appropriations bills to end the shutdown.
• For future shutdowns lasting 14 days or longer, covered employees will receive reimbursement based on available appropriations after the shutdown concludes.

4. Reimbursements for States

The bill states that any state making expenditures to provide assistance during a federal government shutdown lasting 14 days or longer will be reimbursed. This includes:

• Reimbursement to the states must occur within 90 days after the end of the shutdown.
• This provision does not apply if the state is compensated under other federal laws, such as unemployment benefits.

5. Application Process

To be reimbursed, covered employees or states must:

• Submit an application to the Secretary of the Treasury within one year after the end of the shutdown.
• Provide documentation verifying their shutdown costs as required by the Secretary.
• Receive approval for their reimbursement from the Secretary of the Treasury.

6. Establishment of a Fund

The bill establishes a new Reserve Fund for Employees Affected By Government Shutdowns, which will be part of the general fund of the Treasury. This fund will be used to:

• Pay for the shutdown costs of covered employees during any future lapses in appropriations after the law's enactment.
• Access will depend on the availability of appropriated funds.

Relevant Companies

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