Understanding the Bill To Pay Federal Workers During Government Shutdowns

The federal government occasionally faces shutdowns when Congress fails to pass legislation funding government operations These shutdowns directly impact federal employees, resulting in furloughs and missed paychecks To provide financial protection, Congress has passed laws to pay federal workers following shutdowns. This article will explain the bill that guarantees pay for government employees during a lapse in appropriations.

Background on Government Shutdowns

First, some background on the shutdown process

When Congress doesn’t pass bills to fund federal agencies for the fiscal year, the government shuts down.
Without funding, many agency operations legally must cease under the Antideficiency Act.
Shutdowns can be partial or full, depending on how many agencies are impacted.
Shutdowns last until Congress passes appropriations bills to restore funding.
Recent major shutdowns occurred in 1995-1996, 2013, and 2018-2019.
Shutdowns result in temporary layoffs and lack of pay for federal workers.

The Government Employee Fair Treatment Act of 2019

The Government Employee Fair Treatment Act was passed by Congress in January 2019, not long after the 2018-2019 shutdown ended. It gives federal workers financial security. Key provisions include:

Guaranteed back pay for all furloughed federal employees after a shutdown ends.
Guaranteed pay for essential employees who worked without pay during the shutdown.
Back pay calculated based on scheduled work hours and standard pay rate.
Pay issued at the “earliest date possible” once funding is restored.

This law marked the first statutory guarantee of back pay for federal workers after a shutdown. Previously, back pay relied on separate legislation passed after each shutdown. This bill cemented back pay as an automatic right.

Which Federal Employees Are Covered?

The back pay guarantee applies to all federal employees impacted by a shutdown, including:

Furloughed employees who stop working during a funding lapse.
Essential employees required to work without pay during a shutdown.
Full-time and part-time permanent employees across all federal agencies.
Employees on temporary and term appointments.
Foreign national employees based in another country.

As long as an employee was scheduled to work during the shutdown period, they qualify for back pay once government reopens.

How the Back Pay Process Works

After a shutdown ends and funding is restored, the back pay process begins:

Agencies calculate gross back pay for employees based on hours scheduled to work.
Standard payroll deductions are taken out for taxes, health premiums, retirement contributions, etc.
HR provides guidance on submitting back pay claims.
Payroll providers issue back pay on the next regularly scheduled pay date.
Retroactive pay displays on pay stubs and direct deposit as normal income.
Employees receive written confirmation of back pay amounts.

While not ideal, this process ensures federal workers avoid lost wages due to shutdowns beyond their control.

Employee Protections During Shutdowns

Beyond back pay, federal employees also gain other protections:

Furloughed employees are placed on temporary, non-duty status but remain employed.
Essential employees who work are ensured payment after funding is approved.
Employees keep health insurance, though premiums accumulate if unpaid.
Leave accrual continues during furlough periods.
Retirement benefits and contributions are unaffected.
Protections against most debt collection actions.
Unemployment benefits are available in some cases.

While shutdowns remain disruptive, these protections provide reassurance to federal employees.

Responding to a Shutdown as a Federal Employee

If you are a federal employee impacted by a shutdown, here are some steps to take:

Monitor agency guidance on furlough status and reporting requirements.
Submit required paperwork to claim unemployment benefits if furloughed.
Sign up for backup caregiving or emergency loans if needed.
Apply for student loan, mortgage, or credit card relief programs.
Follow agency instructions to verify back pay after funding is authorized.
Update direct deposit and address if necessary prior to receiving back pay.

Staying informed on the latest guidance from your agency and utilizing available assistance programs can ease the burden of a shutdown.

Impact on Federal Contractors

While federal employees receive back pay, contractors do not get the same guarantee:

Contract company employees are laid off and unpaid during shutdowns.
They must seek back pay from their company, which is not required.
Some benefits like health insurance may be disrupted if unpaid.
Bills and debts may go unpaid without a steady income.
Contractors must individually pursue unemployment, relief programs, etc.

To help contractors, some legislators propose providing back pay through their company following shutdowns. But so far this is not law.

The Government Employee Fair Treatment Act provides important financial protections for federal workers impacted by politically-driven government shutdowns. While shutdowns remain disruptive, guaranteed back pay prevents unpaid work and gives compensation certainty. This law is a critical safeguard for civil servants who keep our government running.

Government shutdown: Trump signs bill promising back pay to federal workers

FAQ

Is the bill to end telework for federal employees?

WASHINGTON—U.S. Senators Mitt Romney (R-UT) and Joe Manchin (D-WV) today introduced the Back to Work Act of 2024, bipartisan legislation to require employees of federal agencies to return to in-person work.

Will OPM be affected by government shutdown?

The majority of OPM’s functions are funded by sources other than annual appropriations, and thus would continue during a Government shutdown caused by a lapse in appropriations.

Do furloughed employees get paid during government shutdown?

Furloughed federal workers and employees who are deemed necessary and continue to work will not be paid during the shutdown. However, they will be paid for their work after the government reopens.

What is the Back pay Act for federal employees?

Title 5, United States Code, authorizes the payment of back pay, interest, and reasonable attorney fees for the purpose of making an employee financially whole (to the extent possible), when, on the basis of a timely appeal or an administrative determination (including a decision relating to an unfair labor practice or …

How would a government shutdown affect federal employees?

While a shutdown would not be a good outcome for either the citizens government serves or federal employees themselves, there would be one key difference this time with regard to pay: all federal employees—even those furloughed during the closures—would be guaranteed back pay once operations resumed.

Do members of Congress get paid during a government shutdown?

Yes. Members of Congress, by law, receive their full paychecks throughout a government shutdown. But congressional support staff generally do not receive pay during a shutdown, if there is no appropriated funding for legislative branch activities. Want to stay up to date with the latest federal news and information from all your devices?

Will a government shutdown pause payments?

Although Congress managed to squeak through a temporary deal — until Nov. 17 — to keep the government open, the fear is still there that a shutdown would pause the payments of tens of thousands of federal employees throughout the country.

Who supports the new shutdown Protection Bill?

The new shutdown protection bill has the support of a variety of federal employee groups, including the American Federation of Government Employees, the Federal Managers Association, the Federal Law Enforcement Officers Association, and the National Treasury Employees Union.