Federal government shutdown could affect employers
Congress and the Trump administration failed to agree on legislation to fund the federal government by Oct. 1, the start of the fiscal year, prompting the first government shutdown since 2019. The House had approved a short-term spending bill that would keep the government operating at previous funding levels until Nov. 21 on a party-line basis, but that bill failed to reach the 60 votes needed for passage given the demands of Senate Democrats for the inclusion of expiring health care tax credits. It is unclear how long the political impasse and resulting government shutdown will last.
The U.S. Office of Personnel Management has announced that because of the lapse in appropriations, government operations will “vary by agency.” Most agencies likely will operate indefinitely with only employees and functions deemed “essential” by the administration. Federal operations related to national security and law enforcement are expected to be deemed essential and continue with little change.
Potential effects on employers may include but are not limited to the following:
- Federal contractors and subcontractors could be affected because federal construction projects and solicitations may be delayed if government supervisors are furloughed. Employers are encouraged to reach out to their contracting officer or agreements officer to seek direction regarding any federal contracts being performed.
- Many Department of Labor employees are expected to be furloughed until the government reopens, but workplace safety inspections are expected to continue during the shutdown. Employers are reminded that federal laws and regulations remain in effect despite potentially reduced enforcement activities.
- During past shutdowns, the federal E-Verify program to electronically verify the work authorization status of new hires has been inoperable and suspended. Employers still are required to complete Form I-9 regardless of the availability of E-Verify. Employers who use E-Verify should consult the U.S. Citizenship and Immigration Services website for guidance.
- The processing of employment-based visas or work authorization documents at the Department of Homeland Security and/or Department of Labor may be substantially delayed.
- Most Small Business Administration programs are likely to be inoperable during any shutdown.
- Federal economic and employment statistics may not be issued until the government resumes full operation.
The shutdown will end when Congress passes, and the president signs, either a continuing resolution to continue government operations at existing levels or appropriations legislation to set new spending levels for federal agencies. NRCA will continue to closely monitor this situation and provide more information as it becomes available.
H-2B Workforce Coalition releases economic study
The H-2B Workforce Coalition released a new comprehensive study, The Impact of the H-2B Visa Program on the Employment and Wages of U.S. Workers. Conducted by Edgewater Economics, a nationally recognized economics firm based in North Carolina, the study finds that local areas where increased numbers of H-2B seasonal visas were used in recent years have experienced greater employment growth than other areas of the U.S. labor market. Additionally, the analysis finds no empirical evidence that increased use of workers on H-2B visas had a negative effect on the employment and wages of U.S. workers. NRCA and other members of the H-2B Workforce Coalition will use the study to bolster advocacy efforts urging Congress and the Trump administration to expand the number of H-2B seasonal visas available annually and help contractors address peak workforce needs.
Support ROOFPAC over drinks during NRCA’s fall meetings in Scottsdale, Ariz.
Join your roofing friends and colleagues for a sunset cocktail reception benefiting ROOFPAC on Tuesday, Oct. 28, from 5:30 to 7 p.m. at Outrider Rooftop Lounge in Scottsdale. Unwind with fellow industry leaders overlooking the stunning Camelback Mountain—all while strengthening the roofing industry’s voice on Capitol Hill ($175 per person/$275 per couple). Members of NRCA’s Political Insiders Council and Capitol Hill Club, along with their guests, receive complimentary admission. We thank Amrize—whose portfolio includes Elevate Commercial Roofing Systems, Gen-Flex, Duro-Last, Enverge, Gaco and Malarkey—for making this event possible.
For more information or to register, please visit www.nrca.net/roofpac-fall-event. For any questions or to secure the couples’ rate, contact Teri Dorn at (202) 510-0920 or tdorn@nrca.net.
