In what has become nearly an annual event, the possibility of a partial government shutdown is looming at the end of the month. What does this mean for federal employees’ pay and benefits?

How Are Federal Employees Paid in the Event of a Government Shutdown?

Federal employees may be furloughed during a government shutdown, but thanks to a 2019 law, they are guaranteed to receive back pay for the time that they are furloughed. The Government Employee Fair Treatment Act of 2019 (S. 24) requires federal employees who are furloughed or required to work during a lapse in appropriations resulting from a government shutdown to be compensated for the period of the lapse. Federal employees must be compensated on the earliest date possible after the shutdown ends. 

This means that federal employees who are considered non-essential will still be furloughed during a shutdown and may potentially go without paychecks while their agencies are closed, so having an emergency fund would be wise from a financial planning standpoint to be prepared in case this happens, but the good news is that they will receive full back pay once the shutdown ends.

The law also states that excepted federal employees who are required to work during a shutdown shall be entitled to use leave. They will be paid for said leave at the earliest date possible after the lapse in appropriations ends, regardless of scheduled pay dates. 

According to guidance from the Office of Personnel Management (OPM), federal employees who are furloughed during a shutdown will get paid at their “standard rate of pay” at the earliest date possible after the lapse in appropriations ends.

In guidance issued by OPM during the last shutdown, the “standard rate of pay” for the furlough period was summarized as including any:

• basic pay;
• overtime and other premium pay for regularly scheduled work;
• regular premium payments (e.g., law enforcement availability pay); and
• allowances and differentials payable on a regular basis. Employees who were on previously approved leave without pay (LWOP) or who were absent without leave (AWOL) during the lapse in appropriations will not receive pay for those hours.

Excepted federal employees (those who must work during a shutdown), will receive their “standard rate of pay” after the shutdown ends for the actual hours that they worked, including any overtime or other premium pay, allowances, and differentials earned based on actual hours worked.

Anytime that excepted federal employees are placed in a furlough status, they will be compensated under the rules for furloughed employees. Both furloughed and excepted employees will be paid after the lapse in appropriations ends. Federal employees with questions about their pay in the event of a partial government shutdown should consult with their human resources office for assistance.

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