As another government shutdown looms, federal employees face the harsh reality of potentially missing paychecks due to political gridlock. Here’s what happens during a shutdown and how it impacts workers
Federal workers are divided into two categories during a shutdown:
- Excepted Employees: These workers, such as air traffic controllers, federal law enforcement officers, and border patrol agents, must continue working without immediate pay. They receive government IOUs for their work, including any overtime, but don’t get paid until the government reopens.
- Furloughed Employees: These employees are placed on unpaid leave and cannot work or even volunteer. It’s essentially a forced break without pay, leaving workers uncertain about when they will return to work.
Some agencies, like the U.S. Postal Service, continue normal operations since they don’t rely on taxpayer funding, meaning their employees still get paid. But for most federal workers, a shutdown means financial uncertainty.
Thanks to the Government Employee Fair Treatment Act of 2019, both excepted and furloughed employees are guaranteed to receive back pay once the shutdown ends. This law was enacted after past shutdowns left workers unsure about recovering their lost wages. However, federal employees still face a difficult financial period until they get their payback.
Federal contractors, who also perform critical work for the government, don’t get the same protection. They have no guarantee of back pay and are typically left with a permanent loss of wages during the shutdown.
While paychecks are halted, some benefits continue during the shutdown:
- Retirement benefits through CSRS and FERS are still paid.
- Health benefits remain active.
- Thrift Savings Plan (TSP) contributions stop until the government reopens.
- Scheduled leave is canceled.
One of the most frustrating aspects of a government shutdown is that Members of Congress, who are responsible for the gridlock causing the shutdown, continue to receive their full paychecks. This means that those responsible for the financial strain on federal workers do not face the same consequences.
During the longest government shutdown in U.S. history (2018-2019), 800,000 federal employees went without pay for 35 days. Many struggled with food insecurity, delayed medical treatments, and mounting bills. While they eventually received back pay, the financial damage was already done, affecting their credit scores and creating long-term debt. As we approach another potential shutdown, it’s important to remember that these political standoffs have real consequences for real people.