Who Gets Paid During a Government Shutdown?

When the federal government shuts down, the first question millions of federal employees ask is: Who still has to work, and who gets paid?

Shutdowns happen when Congress fails to pass a spending bill that the president will sign. When that happens, most agencies run out of funding, and large parts of the federal workforce are either furloughed (sent home without pay) or required to work without a paycheck until the shutdown ends.

This shutdown, the first in seven years, is likely to last at least through the end of the work week, with the Senate scheduled to be out of session Oct. 2 in observance of Yom Kippur. Renewed attempts to reopen the spigots are expected Oct. 3.

While the Trump White House and leaders on Capitol Hill are dug in over Democrats’ demands to extend Covid-era Obamacare subsidies passed as part of the Inflation Reduction Act, the Wall Street Journal reported Oct. 2 that rank-and-file members in both parties are searching for compromise.

Do Government Workers Get Paid During a Government Shutdown?

During a shutdown, most federal employees stop receiving paychecks until Congress passes a new funding bill. But thanks to the Government Employee Fair Treatment Act of 2019 (GEFTA), employees are guaranteed retroactive pay once the shutdown is resolved.

That means furloughed workers and essential workers will eventually be made whole. The law does not cover federal contractors, who often go without compensation.

One caveat: Private contractors who work for federal agencies aren’t included and often go without compensation.

Essential Workers vs Nonessential Workers

Certain aspects of the federal government muster on despite the stoppage of funds. Even within those key departments, however, substantial furloughs are expected; for instance, nearly half of the renamed Department of War’s 740,000-plus civilian employees will be idled.

During this shutdown, as with any other, government offices continue “essential” work — a hot-button term, no doubt — conducted by, naturally, essential workers. Nonessential tasks and their associated employees go on hiatus. That covers roughly 750,000 furloughed workers, according to the Congressional Budget Office.

Types of Essential Services

Generally, essential federal employees are those in positions indispensable to national security, public safety, and core government functions. But because there is no universal definition of “essential federal employee,” in every government shutdown, the exact list depends on the president.

Essential employees usually include:

• Those charged with maintaining national defense
• Homeland security (including most U.S. Immigration and Customs Enforcement workers)
• Transportation security officers (including TSA agents and air traffic controllers)
• Federal law enforcement
• Prison staff and corrections officers at U.S. prisons

Notably, even within essential departments and their agencies, not all employees will be deemed essential. Once identified, however, essential employees are expected to be at their posts, even though they won’t be paid until the government reopens.

Types of Nonessential Services

Nonessential services are the programs and offices that close or suspend operations. Examples often include:

• National parks, museums, memorials and zoos
• Large portions of the departments of Education, Commerce, Labor, Health and Human Services, Housing and Urban Development, Interior and State
• Certain tasks carried out by the IRS (such as verifying income and Social Security numbers)
• Economic reporting by the Bureau of Labor Statistics
• Routine food and drug inspections
• Large swaths of NASA.

Employees in these areas are furloughed and, while they will receive back pay later, cannot work during the shutdown.

» More: What Does It Mean to be Furloughed

Do Federal Workers Receive Back Pay After a Government Shutdown?

Enacted in 2019, the Government Employee Fair Treatment Act (GEFTA) guarantees retroactive pay to furloughed employees as well as “excepted” employees (those deemed “essential” who work without pay during a shutdown).

The law requires affected employees to be paid as soon as possible after the shutdown, regardless of the regular pay cycle.

GEFTA covers employees only, not federal contractors.

Can Furloughed Federal Workers Receive Unemployment?

Under most circumstances, furloughed federal workers and contractors are eligible to apply for unemployment insurance (UI) benefits.

In most states, furloughed workers qualify for unemployment if they meet basic eligibility rules.

Essential employees — those working but not getting paid — are not eligible for UI.

Keep in mind, because you almost certainly will receive back pay when the shutdown is resolved, unemployment benefits will most likely result in an overpayment; benefits received during the period covered by back payments must be repaid.