With lawmakers in Congress and President Trump currently unable to reach an agreement regarding legislation needed to fund the federal government past Sept. 30, it appears federal agencies will begin operating indefinitely under a government shutdown as of 12:01 a.m. on Wednesday, Oct. 1. Most agencies likely will operate indefinitely with only employees and functions deemed “essential” by the administration. The potential duration of any shutdown is highly uncertain.
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 could 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.
- Most Department of Labor employees are expected to be furloughed until the government reopens. 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 that 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.
A shutdown can be averted or ended when Congress passes—and the president signs—either a continuing resolution to continue government operations at existing spending 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.
