Search form

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 material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome.

Reproduction of this material in whole or in part is prohibited without the express prior written consent of Jackson Lewis P.C., a law firm with more than 900 attorneys in major cities nationwide serving clients across a wide range of practices and industries. Having built its reputation on providing premier workplace law representation to management, the firm has grown to include leading practices in the areas of government relations, healthcare and sports law. For more information, visit www.jacksonlewis.com.

See AllRelated Articles You May Like

March 19, 2019

Contractors, Your Subcontractors’ Wage and Hour Practices are Your Business

March 19, 2019

A prime or general contractor may be held jointly and severally liable for any violations, including wage and hour violations, by its subcontractors if the contractor is found to be a joint employer with the subcontractor under applicable federal or state law. As most contractors who work on construction projects covered by the federal... Read More

March 19, 2019

Pay Equity for Women Filling Labor Shortage in Construction Industry

March 19, 2019

While the country’s construction industry is booming, with around $1 trillion in new projects, 79 percent of construction companies nationwide reported the need to hire more employees to meet the demand. With high demand and low supply, it is a prime time for women to fill that labor gap. CNBC reported that women make up only 9.1... Read More

March 15, 2019

New Jersey Labor Department Revises Equal Pay Act Data Reporting Requirements

March 15, 2019

The New Jersey Department of Labor (NJDOL) has revised the state equal pay law’s reporting requirements for employers that provide qualifying services or perform public works (e.g., construction, demolition, repairs, and so on) to New Jersey and its agencies to clarify which employees must be included in the annual reporting. The... Read More