Federal law closes dual-pay loophole for government workers

What it does

This bill amends federal civil service law to prohibit federal employees from simultaneously holding multiple government positions, entering into contracts with federal agencies, or receiving compensation under such contracts. Violators must repay all amounts received plus interest and face criminal referral; the Office of Personnel Management Inspector General must audit payroll records annually and report violations to Congress and agency heads.

Why we flagged it

The bill's core function is to close a loophole in federal employment law by prohibiting dual compensation and mandating audits. It is a straightforward anti-fraud and accountability mechanism targeting federal payroll abuse.

What the text implies

• The bill's effectiveness depends on the accuracy and integration of multiple data systems (EHRIS, IRS, time-and-attendance records); gaps in data quality or interagency coordination could limit detection.
• The 'risk-based review of telework and contractor positions' may create pressure on agencies to scrutinize remote workers more heavily, potentially affecting telework policies beyond the dual-employment context.
• Criminal referral language may create chilling effects on legitimate secondary employment (e.g., a federal employee's spouse working as a contractor), depending on how agencies interpret 'indirect' benefit.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill closes a loophole that allows federal employees to collect multiple government salaries simultaneously, which wastes taxpayer money and creates conflicts of interest. Ordinary citizens benefit from reduced fraud, better stewardship of public funds, and clearer accountability in federal employment.

Named in the bill

Office of Personnel Management (OPM), Inspector General of OPM, Department of Justice, Federal agencies, Internal Revenue Service, Title 5 United States Code

Where it stands

3 cosponsors: 3 Republicans.

• Sep 30, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Sep 30, 2025 — Referred to Senate Committee on Homeland Security and Governmental Affairs · Congress.gov: “Read twice and referred to the Committee on Homeland Security and Governmental Affairs”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.