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Will a Government Shutdown Affect My Pay?

by | Oct 6, 2023 | Employment Law, Federal Wage and Hour Violations |

Despite the 11th hour prevention of a government shutdown last week, the American people are on tenterhooks, still dreading a possible government shutdown next month. Over 2.87 federal employees, and their families, have been worrying about how this affects their pay: What does a government shutdown entail? Will the government delay my pay? Will I be paid at all?

When the government enters a “shutdown,” federal agencies must cease all non-essential tasks. This will result in furloughs and layoffs. If you are deemed an essential W2 employee, you will be expected to continue in your daily job without receiving scheduled paychecks.

The Government Employee Fair Treatment Act of 2019 offers specific protections to federal W2 employees in the event of a federal government shutdown. Backpay will be allotted for all time worked once Congress has passed appropriate funding legislation for 2024. This will initiate the reopening of the government.  This guaranteed retroactive pay applies to furloughed employees and employees who are required to work during a shutdown

Unfortunately, contractors are not covered under the Government Employee Fair Treatment Act. The government will not compensate contractors for lost work caused by a government shutdown.  Contractors must review their government contracts to assess what options they may have to seek financial relief.

If you have questions about how a government shutdown could affect your pay, contact one of our expert attorneys at Thatcher Zavaro & Mani to schedule a consultation appointment. 301-850-1246 www.ThatcherLaw.com.

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