{"id":36525,"date":"2025-10-07T19:59:20","date_gmt":"2025-10-07T19:59:20","guid":{"rendered":"https:\/\/financialrush.com\/?p=36525"},"modified":"2025-10-07T19:59:20","modified_gmt":"2025-10-07T19:59:20","slug":"furloughed-workers-face-threat-of-no-back-pay","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=36525","title":{"rendered":"Furloughed workers face threat of no back pay"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108206387\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Commuters cross the street near the Federal Aviation Administration (FAA) headquarters on October 1, 2025 in Washington, DC.<\/p>\n<p>Al Drago | Getty Images News | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Government shutdowns have historically been an precarious time for federal workers, both for those required to remain on the job without pay and those furloughed. <a href=\"https:\/\/www.cnbc.com\/2025\/10\/07\/republicans-democrats-health-care-demands-shutdown-.html\">This shutdown<\/a> comes with added financial uncertainty.<\/p>\n<p>A draft memo from the White House, first reported by <a href=\"https:\/\/www.axios.com\/2025\/10\/07\/trump-memo-furloughed-federal-workers-backpay\" target=\"_blank\">Axios<\/a> and confirmed to <a href=\"https:\/\/www.nbcnews.com\/politics\/trump-administration\/trump-white-house-government-shutdown-layoffs-back-pay-congress-rcna236101\" target=\"_blank\">NBC News<\/a> by the White House, <a href=\"https:\/\/www.nbcnews.com\/politics\/trump-administration\/trump-white-house-government-shutdown-layoffs-back-pay-congress-rcna236101\" target=\"_blank\">suggests<\/a> not all federal workers on furlough are entitled to receive back pay once the government reopens. <a href=\"https:\/\/www.cnbc.com\/2025\/10\/07\/trump-government-shutdown-worker-pay.html\">Asked about back pay<\/a>, President Donald Trump said on Tuesday, \u201cI would say it depends on who we\u2019re talking about.\u201d<\/p>\n<p>\u201cIt really depends on who you\u2019re talking about,\u201d Trump said. \u201cBut for the most part, we\u2019re going to take care of our people. There are some people that really don\u2019t deserve to be taken care of, and we\u2019ll take care of them in a different way.\u201d<\/p>\n<p>Trump has also <a href=\"https:\/\/www.cnbc.com\/2025\/09\/28\/trump-mass-firings-government-shutdown.html\">threatened mass firings<\/a>, if Democrats won\u2019t agree to the GOP funding proposal.<\/p>\n<\/div>\n<h2 id=\"back-pay-guaranteed-by-law\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Back pay guaranteed by law<\/h2>\n<div class=\"group\">\n<p>The memo runs counter to a federal law that requires back pay for federal workers after a shutdown ends, and to recent guidance from the Trump administration.<\/p>\n<p>Congress passed<a href=\"https:\/\/www.congress.gov\/bill\/116th-congress\/senate-bill\/24\" target=\"_blank\"> the Government Employee Fair Treatment Act of 2019<\/a>, and Trump signed it, after the last government shutdown, which lasted for a record 35 days.<\/p>\n<p>\u201cEach employee of the United States Government or of a District of Columbia public employer furloughed as a result of a covered lapse in appropriations shall be paid for the period of the lapse in appropriations,\u201d according to the <a href=\"https:\/\/www.congress.gov\/bill\/116th-congress\/senate-bill\/24\/text\" target=\"_blank\">law<\/a>.<\/p>\n<p>In prior shutdowns, Congress would pass a bill to provide federal workers with back pay.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"more-from-your-money\" class=\"RelatedContent-header\">More from Your Money:<\/h2>\n<div class=\"group\">\n<p><em>Here\u2019s a look at more stories on how to manage, grow and protect your money for the years ahead.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The American Federation of Government Employees, the largest union of federal workers, called the administration\u2019s argument \u201cfrivolous\u201d and \u201can obvious misinterpretation of the law.\u201d<\/p>\n<p>\u201cIt is also inconsistent with the Trump administration\u2019s own guidance from mere days ago, which clearly and correctly states that furloughed employees will receive retroactive pay for the time they were out of work as quickly as possible once the shutdown is over,\u201d Everett Kelley, the national president of AFGE, said in a statement.<\/p>\n<p>The Office of Personnel Management, the government\u2019s equivalent of a human resources department, <a href=\"https:\/\/www.opm.gov\/policy-data-oversight\/pay-leave\/reference-materials\/guidance-for-shutdown-furloughs-sep-28-2025\/\" target=\"_blank\">issued guidance<\/a> dated September 2025 stating that retroactive pay will be available for federal employees affected by a lapse in appropriations \u201cas soon as possible after the lapse in appropriations ends.\u201d<\/p>\n<\/div>\n<h2 id=\"federal-workers-may-have-other-legal-options\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Federal workers may have other legal options<\/h2>\n<div class=\"group\">\n<p>\u201cThe federal government\u2019s threat not to pay furloughed federal employees is both alarming and legally questionable,\u201d said Tom Spiggle, a labor and employment attorney and founder of the Spiggle Law Firm in Washington, D.C.<\/p>\n<p>If the administration does not provide back pay, workers may have other legal options, he said, including bringing a case under the Fair Labor Standards Act. They could also appeal through the Merit Systems Protection Board, an independent agency charged with protecting federal employees.<strong> <\/strong>A class action lawsuit may also be an option.<\/p>\n<p>\u201cFederal employees should document their losses and preserve records of any communications or threats related to pay,\u201d Spiggle said. Those legal avenues for recourse can take months, if not years, to resolve.<\/p>\n<p>If you\u2019re missing paychecks, here are some strategies to cope with delayed or lost income.\u00a0<\/p>\n<\/div>\n<h2 id=\"focus-on-cash-flow\" class=\"ArticleBody-subtitle\"><a id=\"headline2\"\/>Focus on cash flow<\/h2>\n<div class=\"group\">\n<p>Start with a vigorous accounting of expenses: \u201cThree things you really need to focus on \u2026 cash flow, cash flow and cash flow,\u201d said Mary Clements Evans, a certified financial planner and owner of Evans Wealth Strategies in Emmaus, Pennsylvania.<\/p>\n<p>Many people don\u2019t have an understanding of their monthly expenses beyond the large essentials such as rent or mortgage and car payments, she said. Automatic payments and debit or credit card swipes can also make it harder to gauge discretionary spending.\u00a0<\/p>\n<p>\u201cWe\u2019re in a world where we\u2019re disconnected from our spending habits,\u201d Evans said.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108205934\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108205934\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000390597\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Once you have a handle on expenses, <a href=\"https:\/\/www.cnbc.com\/2024\/02\/26\/here-are-ways-to-get-by-without-a-paycheck-after-a-layoff.html\">plan for reduced income<\/a>. This may mean determining <a href=\"https:\/\/www.cnbc.com\/2024\/02\/20\/no-1-money-mistake-to-avoid-after-being-laid-off.html\">which savings to tap<\/a> and adjusting your budget.<\/p>\n<p>\u201cIt sounds like that\u2019s a financial equation, but it\u2019s not. It\u2019s often emotional and psychological, because they feel they\u2019re losing their identity and their status,\u201d said Evans, who is also the author of \u201cEmotionally Invested.\u201d<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/02\/21\/trump-doge-mass-job-cuts-federal-workers-money-questions-answered.html\">Reach out to your lenders<\/a>. Financial institutions may offer payment deferrals, loan modifications and other forms of hardship assistance. For example, Navy Federal Credit Union is offering a Paycheck Assistance Program with <a href=\"https:\/\/www.navyfederal.org\/about\/government-shutdown.html\" target=\"_blank\">zero-interest loans<\/a> for eligible members affected by the shutdown.<\/p>\n<\/div>\n<h2 id=\"prepare-for-possible-unemployment\" class=\"ArticleBody-subtitle\"><a id=\"headline3\"\/>Prepare for possible unemployment<\/h2>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108153940\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Andreypopov | Istock | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The Trump administration\u2019s <a href=\"https:\/\/www.cnbc.com\/2025\/09\/25\/trump-government-shutdown-layoffs-omb.html\">plan for a \u201creduction in force,\u201d<\/a> or RIF, is unique to this shutdown.<\/p>\n<p>\u201cIt\u2019s obviously a changing time in terms of the willingness of this administration to take novel views of what has previously been considered, and is from a plain reading, considered clear law,\u201d said John Hatton, staff vice president for policy and programs at the National Active and Retired Federal Employees Association.<\/p>\n<p>During a shutdown, a majority of employees at government agencies funded through the annual appropriations process are typically put on furlough, or unpaid leave, if the agency hasn\u2019t received funding. Those whose work is necessary to protect life or property, or to deliver mandated benefits, are considered essential and required to work, according to <a href=\"https:\/\/www.opm.gov\/policy-data-oversight\/pay-leave\/reference-materials\/guidance-for-shutdown-furloughs-sep-28-2025\/\" target=\"_blank\">the Office of Personnel Management<\/a>.\u00a0<\/p>\n<p>\u201cThis is always a difficult situation for federal employees,\u201d Hatton said, \u201cwhether they\u2019re working or furloughed or now, adding this new option of receiving a RIF notice, for possible permanent loss of their employment.\u201d<\/p>\n<p>Two federal employee unions, AFGE and the American Federation of State, County and Municipal Employees, have <a href=\"https:\/\/www.afge.org\/globalassets\/documents\/generalreports\/2025\/shutdown-complaint-093025.pdf\" target=\"_blank\">filed a lawsuit<\/a> to keep the Trump administration from moving forward with RIFs during the shutdown, calling the threat of RIFs unlawful.<\/p>\n<p>There are legal requirements for an RIF: Agencies must provide justification for the layoffs, give written notice to employees 60 days before a layoff and offer an appeals process. During a shutdown, only \u201cessential\u201d functions are supposed to be carried out, and experts say it\u2019s uncertain if carrying out mass layoffs would fit that definition.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108191783\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108191783\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000387075\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108191784-17563785621756378560-41385286152-1080pnbcnews.jpg?v=1756378562&w=750&h=422&vtcrop=y\" alt=\"Consumers' debt dilemma: Here's what to know\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>To prepare for a possible layoff, federal employees should research <a href=\"https:\/\/www.cnbc.com\/2025\/03\/07\/doge-layoffs-may-overwhelm-unemployment-system-for-federal-workers.html\">unemployment benefits<\/a> and determine when their <a href=\"https:\/\/www.cnbc.com\/2025\/02\/21\/trump-doge-mass-job-cuts-federal-workers-money-questions-answered.html\">health coverage<\/a> might end.<\/p>\n<p>Research health insurance costs, too. Workers may be able to <a href=\"https:\/\/www.cnbc.com\/2025\/02\/21\/trump-doge-mass-job-cuts-federal-workers-money-questions-answered.html\">extend their\u00a0federal workplace plan<\/a> for up to 18 months through the <a href=\"https:\/\/www.opm.gov\/healthcare-insurance\/healthcare\/temporary-continuation-of-coverage\/#url=Pamphlet\" target=\"_blank\">Temporary Continuation of Coverage<\/a> option \u2014 but they still must shoulder the full cost of premiums.<\/p>\n<p>For now, a more affordable option could be marketplace coverage under the Affordable Care Act.<\/p>\n<p>\u201cYou can go and you can get insurance through them, and that is based on your income,\u201d Evans said.<\/p>\n<p>However, the <a href=\"https:\/\/www.cnbc.com\/2025\/09\/10\/aca-enhanced-subsidies-expire-obamacare-premiums-rise.html\">enhanced subsidies<\/a> that have <a href=\"https:\/\/www.cnbc.com\/2025\/09\/30\/aca-premiums-to-more-than-double-without-enhanced-subsidies.html\">kept premiums low<\/a> are set to expire at the end of the year, unless Congress acts.<\/p>\n<p>The subsidies are a <a href=\"https:\/\/www.cnbc.com\/2025\/09\/28\/government-shutdown-trump-democrats-republicans-health-care.html\">key sticking point<\/a> in the current government funding debate. Democrats say they want to extend them as part of the current budget negotiations, while Republicans say they want to debate the policy only after averting a shutdown.<\/p>\n<p><em><strong>SIGN UP:<\/strong>\u00a0<\/em><a href=\"https:\/\/www.cnbc.com\/money101\/\"><em>Money 101\u00a0<\/em><\/a><em>is an 8-week learning course on financial freedom, delivered weekly to your inbox. Sign up\u00a0<\/em><a href=\"https:\/\/www.cnbc.com\/money101\/\"><em>here.\u00a0<\/em><\/a><em>It is also available in\u00a0<\/em><a href=\"https:\/\/www.cnbc.com\/dinero101\/\"><em>Spanish.<\/em><\/a><\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2025\/10\/07\/government-shutdown-furloughed-workers-threat-of-no-back-pay.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Commuters cross the street near the Federal Aviation Administration (FAA) headquarters on October 1, 2025 in Washington, DC.&hellip;\n","protected":false},"author":3,"featured_media":36526,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-36525","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/36525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36525"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/36525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/36526"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}