Federal Employee Shutdown Guide (2025): What To Do Now, What To Expect, and How To Protect Yourself
Sep 10, 2025
From a federal employee attorney who represents feds every day.
A funding lapse (a “shutdown”) is stressful. It mixes legal rules, agency procedures, and real-life bills that don’t pause. This guide translates the rules into plain English so you can make smart decisions—before, during, and after a shutdown. We’ll keep this page updated as things change, and we’re here if you need help.
Bottom line up front: Agencies follow playbooks from OMB (Office of Management and Budget) and OPM (Office of Personnel Management). You’ll be placed in one of three groups: exempt (funded outside annual appropriations), excepted (you must work during the lapse), or furloughed (sent home and not allowed to work). Under the 2019 federal back-pay law, you will receive retroactive pay after the lapse ends—but timing can affect benefits, leave, TSP (Thrift Savings Plan), and unemployment. We’ll help you navigate those timing issues with as little stress as possible.
1) What a shutdown is (and isn’t)
A shutdown happens when Congress doesn’t pass new funding (or a continuing resolution) in time. Agencies must stop activities funded by annual appropriations unless they’re excepted by law (for example, protecting life and property) or exempt because they have other funding (like no-year or fee-funded programs). OMB tells agencies when to begin “orderly shutdown” steps and when to notify employees of their status.
Key translation, in plain English:
Exempt — Your work continues because it’s funded outside the lapse.
Excepted — You must work during the lapse and are paid later.
Furloughed — You’re sent home and may not work—not even “just checking email”—until recalled.
We know the labels can feel impersonal. If your status is unclear or changes, ask for it in writing and keep a copy. That documentation protects you later.
2) Pay, leave, and back pay—what the law guarantees (and what it doesn’t)
Thanks to the Government Employee Fair Treatment Act of 2019 (GEFTA), both furloughed and excepted employees receive retroactive pay at their normal rate for every day of the lapse, processed as soon as practicable after it ends. GEFTA also lets excepted employees use paid leave during a lapse (a change from the old rules). Plan for cash-flow timing issues: the money comes, but not on the usual pay dates.
Leave & timekeeping essentials: Your agency will give exact coding instructions. Furloughed employees can’t use paid leave during the lapse because they’re in non-pay status; excepted employees generally may request and use leave under GEFTA/OPM guidance. Save every notice and keep your timesheets clean—those records make it easier to fix errors and assert your rights.
3) Health insurance, retirement, and your TSP
FEHB, FEDVIP, FEGLI: Health, dental/vision, and life insurance generally continue. Your share of premiums is withheld when pay resumes (or advanced and collected later). If you’re worried about a specific situation, check your plan’s messages and talk to HR—we want you to keep your care uninterrupted.
TSP contributions: If there’s no pay, new contributions pause until pay resumes. Agencies submit missed automatic and matching contributions with back pay, but your elective contributions depend on the elections in place when pay is processed. TSP loans: Being in non-pay status doesn’t automatically cause a default; TSP has specific guidance for lapses and allows certain loan actions during a shutdown. If you’re unsure, ask before you act—we’d rather help you avoid a fix later.
4) Unemployment (UCFE): can you apply, and will you have to repay?
Yes. Furloughed employees may apply for Unemployment Compensation for Federal Employees (UCFE) under state law while the lapse is ongoing. However, because back pay is guaranteed, you may have to repay UCFE for the same weeks once back pay arrives. States warn claimants about this, but rules vary. If you apply, keep careful records and be ready for reconciliation—don’t let paperwork surprises add stress.
5) Telework, access, and the “don’t work” rule
If you are furloughed, you generally cannot work—no checking email, no logging in, no “quick favors.” Agencies may allow limited, one-time access for administrative steps (like timekeeping). If you are excepted, your duty station and telework rules continue as directed. When in doubt, get the instruction in writing. This protects you if questions come up later.
6) Travel, training, awards, performance deadlines
During a lapse, expect non-essential travel, training, and awards to pause. Agencies usually publish shutdown FAQs on return travel, property protection, records, and timekeeping. If a deadline (performance plans, appraisals) lands during the lapse, agencies typically extend or re-baseline once operations resume. Ask your supervisor for written guidance so expectations are fair and clear.
7) Outside work, ethics rules, and the Hatch Act
You are still a federal employee during a lapse. Ethics rules still apply: don’t use your title inappropriately, don’t use government resources, and get required approvals for outside employment—especially with prohibited sources. The Hatch Act also still applies; political activity rules don’t pause. If you’re considering outside work to bridge cash-flow, check with your ethics office before you start. A quick conversation now can prevent a bigger problem later.
8) If you receive a furlough notice, do this immediately
- Read it fully and save a PDF copy.
- Confirm your status (furloughed vs. excepted vs. exempt) and your timekeeping code.
- Update contact info so you can be recalled quickly.
- Stop work unless your notice says otherwise.
- Document everything—emails, instructions, duty status—so you can reconcile pay/leave and defend your rights later.
If anything is unclear, ask for the guidance in writing. That protects you.
9) If you are excepted and working without pay
Track all hours worked, overtime/comp time, and any on-call time exactly as your agency requires. When funding resumes, verify that back pay and any premium pay were processed correctly. If extended hours are expected, ask for written confirmation and proper overtime/differential authorization. If errors happen, raise them promptly—deadlines to fix pay issues can be short, and we don’t want you to miss them.
10) Unionized employees
Changes to working conditions (schedules, telework, assignments) during and after a lapse may require bargaining. Check with your steward early, especially if management rolls out new procedures quickly. Your union can help ensure policies are applied fairly and can advise on grievance timelines once operations restart.
11) Practical prep: a 20-minute checklist
- Inbox sweep: Create a folder for “Shutdown 2025” and save all official notices there.
- Know your status: Ask your supervisor/HR for your current designation and how they will notify you of changes.
- Cash-flow plan: List bills due in the next 4–6 weeks; ask lenders/credit unions about hardship or skip-payment options (many have programs for feds).
- Benefits snapshot: Download your latest LES; confirm FEHB plan, TSP elections, and loan status.
- UCFE readiness: If furloughed and you plan to apply, learn your state’s process and the likelihood of repayment when back pay arrives.
- Family logistics: Line up childcare/transportation backups in case schedules shift.
- Health & safety: If you’re told to report to an unsafe space, escalate to your safety office, document it, and ask for written instructions.