The clock is ticking on Capitol Hill, where U.S. Congress inches closer to its Oct. 1 deadline to approve spending bills that provide funding for more than 400 federal agencies or else face the embarrassing prospect of a government shutdown.
We’ll see in a matter of days if the current stalemate leads to an interruption of the services these hundreds of agencies provide. In the meantime, two Democratic senators from Virginia have proposed legislation that would seek to shelter federal workers from the financial damage that such a shutdown could do to thousands of government employees.
Senators Tim Kaine and Mark W. Warner recently reintroduced the Federal Employee Civil Relief Act, which would enable government employees and contractors to postpone payment obligations during a shutdown or debt default and for 30 days afterward. An earlier version of the bill was introduced in March 2023.
In a statement announcing the bill’s latest iteration, Senators Kaine and Warner referenced the government shutdown that saw the American government grind to a halt for 35 days between December 18 and January 2019.
During that month-plus span, “many federal workers received a pay stub with zero dollars in it,” Kaine and Warner said, noting that this bill “addresses the real threat of federal workers and contractors losing their homes, falling behind on student loans and other bills, having their car repossessed or losing their health insurance because they have been furloughed during a shutdown or required to work without pay.”
In addition to offering protection to affected federal workers from these and other financial scenarios during a shutdown and for 30 days afterward, the Federal Employee Civil Relief would enable these workers to apply to a court to temporarily postpone payment obligations or eviction or foreclosure actions.
As noted in the press release announcing the bill’s introduction, Senators Kaine and Warner took a number of similar measures during the 2018-2019 shutdown, such as guaranteeing back pay for federal employees, recommending back pay for contractors, introducing budget amendments to protect federal workers and urging OPM to prevent terminating dental and vision insurance for federal employees.
“During the government shutdown under President Trump, we spent lots of time with government employees who often broke down crying because they didn’t know how they were going to put food on the table or keep a roof over their family’s heads,” Kaine and Warner said in the aforementioned statement.
“Some people in Congress treat government shutdowns or the threat of a debt default like political games, but to federal workers and their families, the consequences can be grim and all too real. This legislation will help shield federal employees and their families from those in Congress who think it’s good politics to stop paying our bills by shutting down the government or defaulting on our debt.”
The government shutdown that occurred from December 22 2018 to January 25 2019 was the longest shutdown in US history, lasting 35 days. During this time, over 800,000 federal employees were furloughed or required to work without pay. The financial hardship imposed on these workers led Congress to pass legislation to guarantee pay for employees affected by any future shutdowns. This article provides an overview of the bill passed to ensure federal employees receive pay during government shutdowns.
Background on Government Shutdowns
When the US Congress and President fail to pass legislation funding government operations, a shutdown can occur. Without appropriations bills passed many federal agencies and employees are left unfunded and unable to continue working.
During a shutdown, federal employees are designated as either excepted, exempt, or furloughed:
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Excepted – Employees who perform essential duties, like security tasks or public safety roles. They work without pay during a shutdown.
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Exempt – Employees whose funding does not depend on annual appropriations bills. They continue working and receiving pay.
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Furloughed – Non-essential employees who are sent home without pay
In every previous shutdown, furloughed workers received back pay after the shutdown ended. But this was never guaranteed by law.
2018-2019 Shutdown Triggers Legislation
The 2018-2019 shutdown began on December 22, 2018 and lasted 35 days – the longest shutdown ever. Over 800,000 federal employees went without pay, with 420,000 required to work as “excepted” and 380,000 furloughed.
The financial impact on these workers quickly became devastating. Many struggled to pay mortgages, rent, and other bills. Food bank use spiked as federal employees sought aid.
In response, Congress passed the Government Employee Fair Treatment Act in January 2019 to guarantee pay for employees affected by the shutdown. The bill passed with overwhelming bipartisan support.
Key Provisions of the Government Employee Fair Treatment Act
The Government Employee Fair Treatment Act amended the Anti-Deficiency Act to require the following:
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Retroactive pay at the standard salary rate for furloughed federal employees after the shutdown ends.
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Retroactive pay at the standard salary rate for excepted employees who worked without pay.
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Permission for excepted employees to use paid leave during shutdowns.
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Retroactive compensation for any leave used by excepted employees.
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Expedited pay restoration – as soon as possible after the shutdown ends.
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Coverage for District of Columbia employees affected by shutdowns.
The Act applies to all lapses in appropriations beginning on or after December 22, 2018. This guarantees pay for any future shutdowns in addition to the 2018-2019 incident.
Implementing the Law
Soon after the bill was signed in January 2019, the Office of Personnel Management (OPM) issued guidance to federal agencies on carrying out the Act’s provisions. OPM instructed agencies to process paychecks for furloughed and excepted employees as soon as possible after the end of the shutdown.
Agencies were also told that employee leave canceled during the shutdown would not count against annual leave ceilings. And health insurance coverage continued for furloughed workers despite non-payment of premiums.
Impact on Federal Employees
The Government Employee Fair Treatment Act brought immense relief to the over 800,000 federal workers impacted by the 2018-2019 shutdown. No longer would these employees face weeks or months without pay during a funding gap.
Worker advocates praised the overdue pay guarantee provided in the Act. Many saw the legislation as an important step in reducing financial harm to federal employees caused by partisan political disputes in Congress.
However, the Act does not compensate federal contractors also out of work during shutdowns. Some members of Congress have pledged to address contractor pay in separate legislation.
The Government Employee Fair Treatment Act established crucial safeguards for federal employees affected by government shutdowns. By legally mandating retroactive pay, Congress reduced the financial shock that workers endured during the disastrous 2018-2019 shutdown.
While broader questions remain about the practice of shutdowns, this law marks an important step in mitigating damage to the federal workforce. Employees can now face funding gaps with greater confidence that their pay will be restored.
Congress approves bill to pay back federal employees once shutdown is over
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