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  3. Shutdown Averted for Now. Stay Ready for Another Possible Closure
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Shutdown Averted for Now. Stay Ready for Another Possible Closure

October 2, 2023

The capitol building in washington, dc.

​The federal government shutdown was averted Sept. 30 when President Joe Biden signed legislation to fund the federal government through Nov. 17—when the possibility of a shutdown might resurface.

While federal workers and contractors have been spared being furloughed, agencies and employers should prepare to face another period of uncertainty and possible closure in just a few weeks.

We have answers to questions about how a shutdown would affect federal workers and contractors and have gathered articles on the news from SHRM Online and other outlets.

Continuing Resolution Passed

All but one House Democrat voted to support the short-term funding bill, known as a continuing resolution, while 90 Republicans voted against it, resulting in a vote of 335-91. Rep. Mike Quigley, D-Ill., voted no over a lack of Ukraine aid. The Senate passed the bill 88-9. The reliance by Republican House Speaker Kevin McCarthy, R-Calif., on Democrats to support the continuing resolution resulted in Rep. Matt Gaetz, R-Fla., calling for McCarthy to be ousted from his leadership role. "Bring it on," McCarthy responded.

(The Washington Post, NBC News and AP)

Economic Impact from Shutdown Would Have Been Uncertain

The longer a shutdown lasts, the more damage it's likely to inflict on the economy. A brief shutdown would have been unlikely to slow the economy significantly. But a prolonged shutdown could have resulted in federal workers spending far less, and government contractors might not have recouped all their lost business.

(The New York Times)

E-Verify Outage

A federal government shutdown typically results in the suspension of E-Verify, which has been unavailable during prior shutdowns.

(SHRM Online)

DOL, EEOC and NLRB Contingency Plans

The Department of Labor (DOL), Equal Employment Opportunity Commission (EEOC) and the National Labor Relations Board (NLRB) all issued shutdown contingency plans. During a shutdown, the Wage and Hour Division of the DOL, which enforces the Fair Labor Standards Act and the Family and Medical Leave Act (FMLA), would stop all regulatory work and enforcement activities that don't involve emergencies that threaten human life or property. The Occupational Safety and Health Administration would stop all assistance, outreach, training and rulemaking, and all enforcement activity, including inspections, except a select few, such as those involving imminent dangerous situations.

EEOC staff would not be available to answer questions or respond to correspondence and charges would not be investigated.

The NLRB would not have either public outreach or information officer services to receive calls from the public and provide information about the agency's functions and procedures.

(Lexology)

How to Handle FMLA Leave During a Government Shutdown

If the government shuts down after Nov. 17, employers should be prepared to answer questions about employee leave for federal employees and government contractors who were scheduled to be out on vacation, paid time off or FMLA leave during a government shutdown, their time off now proceeds as usual.

(SHRM Online)

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