New SOS Act Bans Future Layoffs at SBA's Key Offices, Mandates Back Pay for Recently Fired Staff

The new Save Our Staff Act of 2025 (SOS Act) is a direct intervention aimed at stabilizing employment within the Small Business Administration (SBA). Simply put, this bill does two major things: it immediately bans future layoffs in core SBA departments, and it forces the agency to rehire—with full back pay—anyone who was recently let go.

The Lock on Layoffs: Who Gets Protected?

Section 2 of the SOS Act creates a new rule that specifically bans “reductions in force” (RIFs, or layoffs) in what it calls “covered offices.” These aren't just any SBA departments; they are the ones handling the critical, public-facing work. We’re talking about offices that provide advice and training to small business owners, monitor the massive SBA loan portfolio, run disaster relief efforts, or handle small business contracting certifications. Starting the day this bill becomes law, the SBA can’t lay off employees in these areas, regardless of any other rule or law that might allow it. For the staff working in these crucial departments—the folks who help small businesses navigate loans or recover from floods—this means serious job security. The idea is to keep institutional knowledge intact, ensuring that when you need help from the SBA, the staff isn't constantly cycling out.

Rehiring and Retroactive Pay: The 60-Day Mandate

Section 3 gets even more personal by reversing recent job cuts. The bill mandates that within 60 days of enactment, the SBA Administrator must rehire every single employee who was laid off from a covered office between January 20, 2025, and the day this Act becomes law. This isn't just getting their job back; it’s a full restoration. The re-employed staff must be put back into the exact same job at the same pay rate they had before they were removed. Crucially, they are also entitled to full back pay for the entire period they were unemployed. Think of it: if someone was laid off on February 1st and this bill passes in July, the SBA has to write them a check for five months of lost wages and benefits. This is a significant win for the affected employees, guaranteeing they don't suffer financially for a layoff the bill deems unnecessary.

Real-World Implications: Flexibility vs. Stability

While this bill provides a huge boost to employee morale and stability within the SBA, it raises some practical questions about management flexibility and cost. By completely banning RIFs in these core areas, the SBA loses a key tool for adapting its workforce to changing needs or budgets. If a certain loan program shrinks or funding gets cut, the agency can’t easily adjust staffing levels in those offices. This lack of management flexibility could lead to overstaffing in some areas, potentially forcing the agency to find the money for these salaries elsewhere in the budget—a cost that ultimately falls to the taxpayer. Furthermore, the mandate for full back pay, while fair to the employees, places a sudden, potentially large financial burden on the SBA's operating budget, which wasn't planning for those retroactive payments. The SOS Act prioritizes staff stability and continuity of service over administrative agility and cost-cutting measures.