Financial Impact Of The Partial On Federal Employees Government Shutdown

Many government employees and military members are still receiving their paychecks. Many federal employees and contractors missed their first paycheck this past week. Federal employees haven’t been laid off, so the standard job-loss advice doesn’t apply here.

Taking stock of your situation is the most important step you can take. When notices should be issued in the case of a government shutdown, when the period of work disruption may be unknown, requires analysis on a case-by-case basis. Past government shutdowns have led to a temporary loss of income for federal workers and a permanent one for many government contractors. Many employers will consider requiring mandatory use of paid leave and implementing furloughs, temporary shutdowns, or reduced-hours plans as alternatives to layoffs.

It was not clear how many contract workers provide services to the federal government, though some estimates run into the millions. Johnson said the school that her two great grandchildren attend provided donated winter clothes to the boys, and she had to cash in a life insurance policy during the shutdown. The speedy release of the deal is a testament to how untenable lawmakers thought another shutdown would be. It’s true that there isn’t a precedent for providing back pay for federal contractors after a shutdown, unlike those that have been established for compensating furloughed federal employees. Smith says she’s not done pushing the bill, which could still get floor consideration in the future, even though it was left out of this agreement.



Shutdown Hammers 1 Million Contractors From Bloomberg.Com | Duration 53 Seconds

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Unlike for federal employees, there is no official metric to track the number of government contractors. In the financial services industries, that includes banks and brokerage firms, there are ongoing audit functions entirely unrelated to enforcement programs. Field work and activities by federal employees also means travel; with the shutdown all non-essential travel stopped. Another entire class potentially widely affected by the immediate downstream impact is government contractors. Considering the countless critical daily life and safety functions in which the federal government is involved begins to spotlight how the reach of a federal shutdown is well beyond the walls of federal office buildings. Let’s not forget those who serve our country in the military. The potential domino effect of the federal government shutdown is extensive, the longer the shutdown continues. Government contractors can cover anything from outsourced services for agencies, such as cafeteria service at federal office buildings, to major off-site projects. To complicate matters further, of the nine federal agencies affected by the shutdown, each deals with contractors differently. It’s not clear how many contract workers there are overall. More than 1 million federal contractors are unlikely to get back pay because they aren’t legally guaranteed reimbursement for missed time at work during the 35-day shutdown, according to experts and published reports.

It’s not just service employees like janitors, cooks and service workers who are feeling the strain. Some contractors will be able to avoid a drop in revenue, at least for now. Whatever financial pain the shutdown inflicts on government contractors won’t be evenly spread across the country. To ensure conscientious dialogue we have implemented a strict no-bullying policy. Many federal contractors, unlike other government employees, are not expected to get back pay for the paychecks they missed out on during the multi-week shutdown.

For those who did see breaks in their wages, it’s a gaping hole they’re being asked to recover from with little recourse. While the shutdown is now over, its effects are expected to have an outsize impact on many workers for months to come. Government shutdowns hardly ever come by surprise. Who’s the best person to contact during a shutdown? Different agencies may take different approaches to the shutdown. Generally, there are three types of situations contractors find themselves in – all of which present different challenges and impacts to private businesses and their employees. Ironically, in this situation, contracting companies (while not producing revenue) realize less bottom line financial impact.

To avoid large-scale negative economic impacts, it is imperative that government officials end the current shutdown and resume operations across all of government.

One major caveat is that furloughs only apply to non-essential personnel. Federal employees are deemed either “essential” or “non-essential” during a government shutdown.

contractors government shutdown Financial Impact of the Partial on Federal Employees Government Shutdown

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