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Saturday, October 24, 2026

Government Shutdown: New Law Federal Employees Need To Know - FedSmith.com

As the end of current federal appropriations again looms, this time on December 3rd, federal employees are again steeling themselves for a government shutdown.

This time, however, since the last lengthy government shutdown between December 2018 and January 2019, Congress has passed laws that change how shutdowns impact federal employees.

Shutdowns and Federal Employees’ Pay

The biggest change comes from the Government Employee Fair Treatment Act, under which all federal employees are considered in “pay status” during the shutdown, even those non-essential workers who have previously been furloughed.

The rub is that these employees will not receive paychecks while their agencies are closed, but the law guarantees that they will receive back pay for the workdays during the shutdown, including benefits, accrual of leave, bonuses, and all other compensation they would normally receive when the government reopens.

FEHB and FEGLI in a Shutdown

Additionally, while previously federal employee health coverage was continued during shutdowns, under the Act, long-term care insurance, vision, and dental coverage are now also continued, and insurance carriers are prohibited from terminating any of these benefits due to non-payment of premiums.

Additionally, the Federal Employee Health Benefits (FEHB) and Federal Employee Group Life Insurance (FEGLI) systems are now classified as “emergency” services, which ensures that federal employees will be able to modify, enroll, or disenroll in...



Read Full Story: https://www.fedsmith.com/2021/12/01/government-shutdown-new-law-federal-emplo...