As Congress and the Trump administration remain at an impasse regarding how to fund the federal government for the fiscal year beginning Oct. 1, most agencies continue operating only with employees and functions deemed essential by the administration. The U.S. Office of Personnel Management has announced government operations vary by agency during the lapse in government funding. Most federal operations related to national security and law enforcement are operating largely as usual.
Potential effects on employers from a prolonged government shutdown include but are not limited to the following:
- Federal contractors and subcontractors could be affected because federal construction projects and solicitations may be delayed as some government supervisors are furloughed and nonessential operations are put on hold. Employers are encouraged to reach out to their contracting officer and/or the contracting agency website to seek direction regarding the status of federal contracts and payments. Employers should also review their federal contracts for which projects will be affected and which costs are reimbursable during a shutdown.
- Many Department of Labor employees have been furloughed, but some workplace safety inspections are continuing during the shutdown. Employers are reminded that federal laws and regulations remain in effect despite reduced enforcement activities.
- The E-Verify program to electronically verify the work authorization status of new hires is now operating normally after a brief interruption between Oct. 1 and Oct. 9. The Department of Homeland Security has announced participating employers must create an E-Verify case for any individuals who were hired while the program was inoperable during that period. View more information.
- The processing of employment-based visas or work authorization documents at the Department of Homeland Security and/or Department of Labor may be substantially delayed.
- Many Small Business Administration programs are inoperable during the shutdown.
- Federal economic and employment statistics may not be issued in a timely manner until the government resumes full operation.
The shutdown will end when Congress passes, and the president signs, either a continuing resolution to continue government operations at existing levels or appropriations legislation to set new spending levels for federal agencies. NRCA will continue to closely monitor this situation and provide more information to members as it becomes available.
