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Potential October 1 Government Shutdown: Federal Contractors’ Contingency Planning

By Leslie A. Stout-Tabackman
  • September 15, 2015

A federal government shutdown looms as current funding expires on September 30 and government leaders disagree on funding legislation. The present shutdown threat is fueled by two primary issues set against the backdrop of presidential election posturing by both political parties. President Barack Obama has announced that he will not follow the sequestration cuts the government forced upon itself in 2013 (the last time a partial government shutdown occurred), when it failed to agree on funding. Conservative Republican leaders have vowed to link defunding of Planned Parenthood to passing spending legislation. While leaders of the Republican-controlled Congress have vowed to avoid an unpopular government shutdown, this same vow was made in 2013.

The 2013 partial government shutdown lasted two weeks and caused havoc for many government contractors and uncertainty with respect to a host of employment and labor laws implicated when funding suddenly stopped and employees could not report to work. While some contractors were able to secure retroactive funding to cover or defray labor costs associated with the 2013 shutdown, such funding varies from agency to agency, and from contract to contract — which can make planning difficult.

As of this writing, a shutdown may occur on October 1 or a temporary funding measure may be passed to postpone a possible shutdown to December or early 2016.

Contractors can start their contingency planning by revisiting our articles identifying and providing practical advice on the many employment and labor law concerns linked with a government shutdown:

For more information or assistance on particular issues, please contact a Jackson Lewis attorney.

©2015 Jackson Lewis P.C. This Update is provided for informational purposes only. It is not intended as legal advice nor does it create an attorney/client relationship between Jackson Lewis and any readers or recipients. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances. Reproduction in whole or in part is prohibited without the express written consent of Jackson Lewis.

This Update may be considered attorney advertising in some states. Furthermore, prior results do not guarantee a similar outcome.

Jackson Lewis P.C. represents management exclusively in workplace law and related litigation. Our attorneys are available to assist employers in their compliance efforts and to represent employers in matters before state and federal courts and administrative agencies. For more information, please contact the attorney(s) listed or the Jackson Lewis attorney with whom you regularly work.

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