How Federal Employees Can Prepare for a Government Shutdown

Step One: Know Your Status

The single most important action to take today is clarifying whether you are exempt, excepted, or furloughed. Exempt positions remain funded, excepted employees must work without pay (with guaranteed back pay later), and furloughed employees are sent home and barred from working. Ask your supervisor for your designation in writing and save it—creditors and state unemployment offices often request proof.

Step Two: Understand Your Pay Rights

Shutdowns create delays, not permanent losses. Federal law guarantees back pay for all employees once the government reopens. The uncertainty lies in when, not whether, pay arrives. Adjust your budget for a possible gap, but avoid unnecessary panic.

Step Three: Follow the Anti Deficiency Act

If you are furloughed, resist the urge to “just check in.” Do not open government laptops, answer emails, or volunteer time. The Anti deficiency Act prohibits unpaid work, and violations can create legal and disciplinary risk. Excepted employees should carefully track hours and follow agency instructions.

Step Four: Benefits Continue—With Caveats

• FEHB health insurance remains active; premiums will be collected once pay resumes.

• FEGLI life insurance continues for up to 12 months in non-pay status.

• FEDVIP dental/vision coverage also continues, with delayed premium deductions.

• FSAFEDS accounts pause differently: healthcare FSAs won’t reimburse until you’re back in pay status, but dependent care FSAs may continue if needed for work or school.

Step Five: TSP and Retirement Considerations

TSP contributions stop without a paycheck, but service credit for retirement is not lost. Existing TSP loan payments can be suspended during non-pay, though interest continues. If you need a bridge, you may apply for a new loan, but borrow only what is essential.

Step Six: Unemployment and Cash Flow

Most furloughed employees can apply for state unemployment benefits, but you will have to repay them once back pay arrives. Keep all pay stubs and agency notices to reconcile quickly. Meanwhile, contact lenders and utilities early to request hardship or deferment options.

Step Seven: Outside Work and Ethics Rules

Even during a shutdown, you remain a federal employee. The Hatch Act and your agency’s outside employment rules still apply. Many agencies require prior written approval for any secondary work. Seek clearance now, before a lapse occurs.

Step Eight: Protect Your Career Clock

Shutdown furloughs do not break your federal career timeline. Once back pay is processed, your service time, step increases, and “high-3” retirement calculations continue without penalty.

Step Nine: Build a Communication Plan

Before September 30, confirm your personal contact information with your supervisor and understand your agency’s Day 1 communication chain. Store a folder with your SF-50, last LES, and furlough/excepted notice so you’re prepared if questions arise.

Shutdowns are disruptive, but with preparation, you can protect your paycheck, benefits, and career trajectory.

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.