Federal Judge Halts Shutdown-Based RIFs Nationwide
administrative law federal employment government shutdown mspb rif appeals Oct 16, 2025In a sweeping move late Thursday, Judge Susan Illston of the Northern District of California issued a Temporary Restraining Order (TRO) stopping the administration from carrying out or issuing new reduction-in-force (RIF) notices tied to the government shutdown. The ruling effectively freezes any ongoing or planned layoff actions across dozens of agencies—at least for now.
The order covers all programs, projects, or activities that include members of AFGE or AFSCME. Agencies are barred from issuing new RIFs, processing those issued on or after October 10, or requiring employees to work to implement them. Critically, the court tolled all RIF notice periods, meaning no days count toward separation while the TRO is in effect.
Who and What the Order Covers
The ruling names a broad range of agencies, including Agriculture, Commerce, Education, Energy, HHS, DHS, HUD, Justice, Interior, Labor, State, Treasury, Transportation, VA, and major independent agencies such as EPA, NASA, GSA, EEOC, SSA, and FTC. If your unit falls within those programs and you’re represented by AFGE or AFSCME, you’re covered under the TRO.
Each affected agency must now file a detailed accounting—listing every RIF already issued or planned—and verify compliance by 5:00 p.m. Pacific on October 17. The court also denied the government’s request to delay enforcement, setting a $10 bond and moving straight into the next phase: a fast-tracked hearing on a preliminary injunction scheduled for October 28.
Why the Court Hit Pause
Judge Illston found the unions likely to succeed under the Administrative Procedure Act (APA). The court concluded that the OMB “Lapse Memorandum” and OPM’s shutdown guidance function as final agency actions—and that using a funding lapse to conduct mass layoffs appears arbitrary and capricious.
The judge cited real-world harm: RIF notices sent to employees’ work emails while they were barred from accessing systems; HR staff furloughed and unable to help; and hundreds of erroneous notices at HHS. The court rejected the administration’s argument that employees must navigate this individually through personnel channels, affirming that such systemic violations can be reviewed under the APA.
What Federal Employees Should Do Now
If you’ve received a RIF notice, keep every document—including envelopes, emails, and instructions. Even though the TRO pauses implementation, mark your deadlines in case the legal posture changes. And do not perform any RIF-related work during the shutdown; the court expressly forbids it.
Most importantly, stay in communication with your union or legal counsel to confirm how this order applies to your agency.
This ruling is temporary, but it signals judicial recognition that the shutdown-based RIF strategy may have crossed legal and ethical lines. As the case moves toward an October 28 hearing, federal employees can take a breath: for now, the law has pressed pause.
Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.
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