The Impact of a Government Shutdown on Employees, Retirees, and Contractors

Up to 2.2 million civilian federal employees may face furlough or work without pay if Congress fails to reach an agreement on federal spending before a government shutdown. During a shutdown, furloughed employees cease work and temporarily go without pay, while those deemed necessary for excepted activities continue to work without pay. Backpay is guaranteed for all federal employees after a shutdown ends, but federal contractors may not receive backpay. Paid leave is canceled during a shutdown, but accrual of leave and sick leave continues. Health insurance coverage and retirement services continue, while the Thrift Savings Plan remains unaffected. Lawmakers are pushing to end government shutdowns, citing the detrimental effects on federal employees and services. Federal unions are urging Congress to pass a continuing resolution to avoid a shutdown.