Federal employees are starting to see the impact of the government shutdown on their paychecks as it continues into its third week.
According to the Wall Street Journal, federal employees will soon see reduced pay:
Federal civilian employees will first see the effects in a reduced paycheck on either Friday, Oct. 10 or Tuesday, Oct. 14, depending on which agency employs them. This will cover pay for work through Oct. 1, when the shutdown began.
Should the shutdown continue, federal workers will then miss their full paychecks on Oct. 24 or Oct. 28. Workers across federal government agencies all receive their salaries according to slightly different pay calendars.
WSJ also reported that federal employees have begun turning to various side jobs to supplement their regular income during the shutdown, ranging from driving for Lyft to selling goods at farmers markets.
The Trump administration has floated the notion that federal employees may not be entitled to back pay resulting from the government shutdown despite the 2019 law that states otherwise.
News broke last week indicating that the administration was reportedly considering this. A memo from the White House Office of Management and Budget (OMB) says that back pay for federal employees must be provided by Congress if it chooses to do so as part of legislation to fund the government.
The OMB memo argues that the Government Employee Fair Treatment Act of 2019, which mandates payment for federal workers after funding is restored, is not self-executing and requires Congressional action to reopen the government.
However, guidance from the Office of Personnel Management says that back pay will be provided to federal employees once a government shutdown ends. OPM’s guidance for shutdown furloughs states:
Will employees who are furloughed get paid?
A. Yes. After the lapse in appropriations has ended, employees who were furloughed as the result of the lapse will receive retroactive pay for those furlough periods. (See 31 U.S.C. 1341(c)(2).) Retroactive pay will be provided on the earliest date possible after the lapse ends, regardless of scheduled pay dates. (See 31 U.S.C. 1341(c)(2).) If retroactive pay cannot be provided by the normal pay date for the given pay period, it will be provided as soon as possible thereafter. Retroactive pay is provided at the employee’s “standard rate of pay.” (See Question D.4. Note that retroactive pay may be zero if an employee was scheduled (before the lapse took effect) to be in a nonpay status during the period when the lapse was in effect.)
Not surprisingly, federal employee unions denounced these reports. AFGE, AFSCME and the Democracy Defenders Fund sent a letter to OMB Director Russel Vought explaining why they believed this notion on backpay was invalid. It stated:
In effect, your view is that there is no requirement to pay back pay unless Congress explicitly states so in separate legislation. But this all amounts to legal legerdemain, seeking to “create ambiguity where the statute’s text and structure suggest none.” The law is clear: each employee “shall” be “paid for the period of the lapse in appropriations.”
The letter later adds, “Given the clarity of the law, there is no place for the Administration to backpedal on its obligation to pay furloughed workers. The Administration’s statements appear to be a naked attempt at inflicting pain on innocent parties to gain advantage in the shutdown.”
AFGE and AFSCME have also sued the Trump administration over layoffs that have begun taking place during the government shutdown.
OMB insinuated this week that more layoffs will be forthcoming if the shutdown continues. “OMB is making every preparation to batten down the hatches and ride out the Democrats’ intransigence. Pay the troops, pay law enforcement, continue the RIFs, and wait,” read a Tuesday morning post on X.
It seems unlikely that federal employees will be denied backpay after the shutdown concludes given the past legal precedent, but it if a battle ensues over the matter it could be something that has to be settled by the courts.
