Federal Workers: Key Facts on Receiving Retroactive Pay

Federal workers currently facing pay delays due to the ongoing government shutdown are understandably anxious about the prospect of receiving retroactive pay. Approximately 1.4 million employees are bracing for financial impacts as their paychecks have been withheld.

Understanding Retroactive Pay for Federal Workers

Two distinct groups of federal workers are notably affected by the absence of government funding: furloughed employees and “excepted” workers. Both categories are entitled to back pay according to the Government Employee Fair Treatment Act of 2019.

Eligibility for Back Pay

• Furloughed employees who are not allowed to work during the shutdown.
• Excepted employees who are required to continue working without compensation.

This federal law ensures that both groups will receive their full pay once appropriations are restored. It states that affected employees “shall be paid for the period of the lapse in appropriations.”

Legal Challenges and Guidance

Despite assurances from legal experts, uncertainties persist due to conflicting guidance from the White House’s Office of Management and Budget. A recent draft memo indicated that furloughed workers might not be guaranteed back pay, although many believe the 2019 law clearly mandates it.

Max Stier, CEO of the Partnership for Public Service, emphasized that the law explicitly provides automatic back pay for workers during funding lapses. Meanwhile, an October 7 statement from President Trump indicated that the issue would depend on specific circumstances.

Current Pay Status and Future Outlook

The last partial paycheck for these federal employees was issued on October 10, and their scheduled payday for October 24 has come and gone without payments. This shutdown marks one of the longest in U.S. history, now stretching into its 27th day.

When the government reopens, the Government Employee Fair Treatment Act states that payment will be made “as soon as possible” after the lapse ends.

Impacts on Contractors and Unemployment Benefits

While federal employees are guaranteed back pay, contractors who work on government projects do not have the same assurance. They can continue to receive payment only if their contracts are fully funded.

Federal workers may also seek unemployment benefits during the shutdown. The Unemployment Compensation for Federal Employees program allows workers to receive benefits for 26 weeks. However, retroactive pay will be deducted from any unemployment funds received to prevent overpayment. Notably, excepted employees are generally ineligible for these benefits.

In conclusion, federal workers affected by the shutdown can expect that, once appropriations are restored, significant efforts will be made to ensure they receive the pay they are owed.