As the government shutdown continues, approximately 1.4 million federal employees are facing financial uncertainty as they navigate the complexities of retroactive pay. With their wages being withheld, many workers are cutting back on nonessential expenses after missing their first full paychecks. This article provides essential information for federal employees concerning the potential for back pay once the shutdown concludes.
Under the Government Employee Fair Treatment Act of 2019, both furloughed workers and those designated as excepted government employees—who must continue to report to work during the shutdown without compensation—are entitled to back pay. This federal law clearly states that employees affected by a lack of funding will eventually receive full payment for the duration of the shutdown. Specifically, the law stipulates that excepted employees will be compensated for the work they perform during a lapse in appropriations, paid at their standard rates.
Despite the provisions outlined in the 2019 law, there are concerns regarding the guarantee of back pay for furloughed workers. A draft memo from the White House's Office of Management and Budget indicates that furloughed workers may not be assured of receiving retroactive pay. This has raised questions among federal employees about their rights. When queried about the back pay situation for furloughed workers on October 7, President Trump remarked, "It depends on who we're talking about."
However, legal experts maintain that the protections afforded to federal employees by the Government Employee Fair Treatment Act are clear. Max Stier, the CEO of the nonprofit Partnership for Public Service, emphasized that the act mandates automatic back pay for furloughed workers during any lapse in appropriations. Dan Meyer, a partner at Tully Rinckey in Washington, D.C., reinforced this view, stating that the appropriations language in the law would likely favor federal employees if the matter were brought before a judge.
The recent draft memo from the White House contradicts earlier guidance provided in September by the U.S. Office of Personnel Management (OPM). According to the OPM's initial notice, the Government Employee Fair Treatment Act ensures that both furloughed and excepted employees will receive retroactive pay as soon as appropriations are reinstated. However, updated guidelines have since removed this assurance, stating that excepted employees will be compensated for any earned overtime or holiday pay once appropriations are enacted.
When will federal workers receive their back pay? According to the Government Employee Fair Treatment Act, federal employees are owed retroactive pay as soon as the government shutdown comes to an end, irrespective of scheduled pay dates. Michael LeRoy, a professor of labor and employment relations at the University of Illinois Urbana-Champaign, asserts that the law explicitly entitles workers to back pay, prioritizing automatic payment. The last partial paycheck for federal employees was issued on October 10, and they were due for their next paycheck on October 24, but no payments have been made as the shutdown persists into its 27th day.
While federal employees may have some protections, government contractors do not have the same guarantees regarding back pay. Private sector firms that provide services to the government employ millions of workers in various roles, including custodial and information technology positions. These contract workers are not covered by the same statutes that protect federal employees and may continue working and receiving pay only if their contracts are fully funded.
During the shutdown, some federal employees may qualify for unemployment compensation. The Unemployment Compensation for Federal Employees program offers benefits to those who have lost their jobs through no fault of their own. According to OPM guidelines, benefits can last for up to 26 weeks, with amounts varying by state. It is important to note that when retroactive pay is eventually received, it may be applied against any unemployment benefits to prevent overpayment. Furthermore, excepted workers are typically not eligible for unemployment benefits, as they are not considered unemployed.
As the situation develops, federal workers remain hopeful for a resolution that will ensure their financial stability and rightful compensation once the government shutdown concludes.
