The IRS has recently revised its guidance regarding back pay for furloughed federal employees, creating confusion and uncertainty among workers affected by the ongoing government shutdown. Initially, the agency assured employees that they would receive back pay once the shutdown concludes. However, the latest notice indicates a shift in policy, now deferring to the Office of Management and Budget (OMB), which has suggested that furloughed employees may not be guaranteed back pay.
In January 2019, legislation signed by President Trump ended a record 35-day government shutdown. This legislation, known as the Government Employee Fair Treatment Act of 2019, ensured that federal employees who were furloughed would receive back pay once the government reopens. However, the IRS's recent notice indicates that earlier guidance misrepresented the implications of this act regarding compensation for employees during a furlough.
The IRS communicated in a notice, shared with Federal News Network, that “an earlier memo circulated on furlough guidance incorrectly stated the nature of the Government Employee Fair Treatment Act of 2019, as it relates to compensation for non-pay and non-duty status.” The IRS assured furloughed employees that the OMB would provide further guidance on this matter, stating, “you will be updated accordingly.”
On Wednesday, an IRS employee reported that previous guidance about guaranteed back pay was automatically deleted from their inboxes by Thursday, adding to the confusion. Despite the IRS's backtracking on its previous back pay guarantee, earlier assurances are still accessible on the agency's website dedicated to providing shutdown guidance to employees.
In a notice sent to furloughed employees, the IRS reiterated that “although you will be placed in non-pay and non-duty status during the furlough, the Government Employee Fair Treatment Act of 2019 requires employees of the federal government who are furloughed or required to work during a lapse in appropriations to be compensated for the period of the lapse.” The notice emphasized that affected employees should be compensated on the earliest date possible after the lapse ends, regardless of their scheduled pay dates.
On Tuesday, OMB circulated a draft legal opinion stating that furloughed federal employees would no longer be automatically assured back pay. Instead, it contended that lawmakers must explicitly approve back pay for furloughed employees in any stopgap spending bill. This proposal has drawn bipartisan criticism from congressional leaders, with many questioning the legality of such a change.
House Speaker Mike Johnson (R-La.) expressed his concerns, stating, “it’s my understanding that the law is that they would be paid.” He acknowledged the existence of different legal analyses surrounding the issue but reaffirmed his belief that federal employees should not face financial hardship due to the shutdown. Johnson asserted, “They should not be subjected to harm and financial dire straits.”
Amidst the evolving situation, IRS employees are expressing their frustration and uncertainty. One employee remarked to Federal News Network, “This latest update was really confusing and stressful. No one knows who’s getting paid and who will not.” As this story develops, updates will be provided to keep affected employees informed about their pay status during the government shutdown.
For further inquiries regarding recent changes in the federal government, you may contact the reporter at jheckman@federalnewsnetwork.com or reach out on Signal at jheckman.29.
