Furloughed workers face threat of no back pay
Passengers cross the street near the Federal Aviation Administration (FAA) headquarters in Washington, D.C., on October 1, 2025.
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Government shutdowns have historically been an unstable time for federal employees, both for those required to remain at work without pay and for those placed on unpaid leave. This closure brings financial uncertainty.
First, a draft memo from the White House axios and approved NBC News by the White House, suggests When the government reopens, not all furloughed federal employees are eligible for back pay. Asked about the remaining payment, President Donald Trump said Tuesday: “I would say it depends on who we’re talking about.”
“It really depends on who you’re talking about,” Trump said. “But mostly we’re going to take care of our people. There are some people who really don’t deserve to be taken care of, and we’re going to take care of them in a different way.”
Trump also threatened mass layoffs if Democrats did not accept the GOP’s funding offer.
Reimbursement guaranteed by law
The declaration runs counter to federal law and recent guidance from the Trump administration that require retroactive pay to federal employees after the shutdown ends.
Congress passed Fair Treatment of Government Employees Act of 2019and Trump signed it after the last government shutdown lasted a record 35 days.
Accordingly, “Each employee of the United States Government or a public employer in the District of Columbia who is placed on leave due to an overage of benefits shall be paid during the period of the overrun of benefits.” law.
During previous shutdowns, Congress would pass a bill to pay federal workers back pay.
The American Federation of Government Employees, the largest union for federal workers, called the administration’s claim “frivolous” and a “blatant misinterpretation of the law.”
“This is also inconsistent with the Trump administration’s own guidance just a few days ago, which clearly and accurately stated that furloughed workers would receive retroactive pay for the time they were unemployed as soon as possible once the shutdown ends,” Everett Kelley, AFGE’s national president, said in a statement. he said.
Office of Personnel Management, the government’s equivalent of the human resources department published guide Dated September 2025, it states that retroactive payments may be made to federal employees affected by the reduction in benefits “as soon as practicable after the delay in benefits ends.”
Federal workers may have other legal options
“The federal government’s threat to not pay furloughed federal employees is both concerning and legally questionable,” said Tom Spiggle, a labor and employment attorney and founder of the Spiggle Law Firm in Washington, D.C.
He said workers may have other legal options if management doesn’t provide refunds, including filing a lawsuit under the Fair Labor Standards Act. They can also appeal through the Merit Systems Protection Board, an independent agency tasked with protecting federal employees. A class action lawsuit may also be an option.
“Federal employees must document their losses and keep records of any communication or threats regarding payment,” Spiggle said. he said. These legal recourses can take months, if not years, to resolve.
If you’re missing paychecks, here are some strategies for coping with late or lost income.
Focus on cash flow
Start with a strong accounting of expenses: “The three things you really need to focus on are … cash flow, cash flow and cash flow,” said Mary Clements Evans, a certified financial planner and owner of Evans Wealth Strategies in Emmaus, Pennsylvania.
Many people don’t have an understanding of their monthly expenses beyond major essentials like rent or mortgage and car payments, he said. Automatic payments and debit or credit card swipes can also make discretionary spending difficult to measure.
“We’re in a world where we’re disconnected from our spending habits,” Evans said.
Once you have control over your expenses, income reduction plan. This may mean determining what savings you’ll benefit from and adjusting your budget.
“It seems like a financial equation, but it’s not. It’s often emotional and psychological because they feel like they’ve lost their identity and status,” said Evans, who is also the author of “Emotionally Invested.”
Reach out to your lenders. Financial institutions may offer payment deferrals, loan modifications, and other types of hardship assistance. For example, Navy Federal Credit Union offers a Paycheck Assistance Program. zero interest loans For eligible members affected by the closure.
Be prepared for possible unemployment
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Trump administration The “reduction in force” or RIF plan is specific to this shutdown.
“It’s clearly a changing time in terms of this administration’s willingness to take new views from a plain reading of what was previously considered and accepted as clear law,” said John Hatton, vice president of policy and programs for the National Active and Retired Federal Employees Association.
During a shutdown, the majority of employees at government agencies funded through the annual appropriations process are typically placed on unpaid leave or furlough if the agency has not received funding. Persons whose work is necessary to protect life or property or to provide essential benefits are considered essential and must work according to this law. Office of Personnel Management.
“This is always a difficult situation for federal employees,” Hatton said, “whether they are working or on leave or now, adding the new option to receive a RIF notice for possible permanent job loss.”
Two federal employee unions, AFGE and the American Federation of State, County and Municipal Employees, filed a lawsuit Blocking the Trump administration from moving forward with RIFs during the shutdown and characterizing the RIF threat as illegal.
There are legal requirements for RIF: Agencies must provide justification for layoffs, provide written notice to employees 60 days before the layoff, and provide an appeals process. Only “essential” functions need to be performed during the shutdown, and experts say it is unclear whether mass layoffs would fit that definition.
To prepare for a possible layoff, federal employees should research unemployment benefits and determine when their health insurance may end.
Also research health insurance costs. Workers can extend their federal workplace plans for up to 18 months. Temporary Continuation of Coverage option – but they still have to bear the full cost of the premiums.
For now, marketplace coverage under the Affordable Care Act may be a more affordable option.
“You can go and get insurance through them, it depends on your income,” Evans said.
But the increased subsidies that keep premiums low are expected to expire at the end of the year unless Congress acts.
Subsidies are a major sticking point in the current government funding debate. Democrats say they want to extend that deadline as part of current budget negotiations, while Republicans say they want to discuss the policy only after a shutdown is averted.
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