As the government shutdown persists, many federal workers are concerned about the possibility of retroactive pay. Approximately 1.4 million federal employees have been affected, missing their first full paycheck since the shutdown began.
Understanding Retroactive Pay for Federal Workers
Both furloughed employees and those designated as “excepted” are entitled to back pay under the Government Employee Fair Treatment Act of 2019. This legislation ensures that all federal employees impacted by funding lapses will ultimately receive their wages.
- Furloughed employees will receive back pay for the entire duration of the shutdown.
- Excepted employees, who are required to work during the shutdown, are also guaranteed retroactive compensation.
Legal Insights on Back Pay Guarantees
Despite the assurances provided by the 2019 law, recent communications from the White House’s Office of Management and Budget raised concerns about whether furloughed workers would be guaranteed back pay. Legal experts maintain that the act clearly mandates back pay for federally affected employees.
Max Stier, CEO of the Partnership for Public Service, stressed that the law explicitly protects furloughed workers’ rights. Dan Meyer, a legal partner in Washington, D.C., echoed this sentiment, noting that the appropriations language directly obligates payment to federal workers.
Timing of Back Pay Distribution
According to the Government Employee Fair Treatment Act, back pay should be disbursed “at the earliest date possible” following the end of the shutdown. Given that the shutdown entered its 27th day, federal employees are awaiting clarification on their payment schedule.
- Last partial paycheck received: October 10
- Next scheduled payday: October 24 (missed)
Impacts on Government Contractors and Unemployment Benefits
Unlike federal employees, contractors working under government contracts do not have the same guarantees for back pay during a shutdown. They may still work and receive pay if their contracts are funded.
Federal workers may also qualify for unemployment benefits during the shutdown. The Unemployment Compensation for Federal Employees program offers assistance to those who have lost their employment. Benefits typically last for 26 weeks, with limits defined by state law.
As retroactive pay is issued, it will offset any unemployment benefits received to prevent overcompensation. Additionally, excepted workers generally do not qualify for unemployment benefits since they are still considered employed.
The ongoing situation remains fluid, and federal employees continue to seek clarity on their compensation during this unprecedented time.
