On November 12, 2025, the federal government finally reopened after a 43-day shutdown – the longest in U.S. history. During the period of a government shutdown, federal employees cannot be paid and can only be paid when Congress reaches a deal and the lapse in appropriations ends. While this means that hundreds of thousands of federal employees were sent home without pay (approximately 670,000 in total) during this most recent shutdown, hundreds of thousands of “essential” employees – basically, the ones necessary to keep the country running (about 730,000 in total) – were required to continue working, without pay, with only the promise of retroactive pay when the government reopens.1
Good luck trying that as a private employer. In the private sector, federal and state wage and hour laws impose strict pay requirements. Although employers may experience financial hardship or operational disruptions, some of which may even require an employer to suspend or “shut down” operations for a period, there is no equivalent “private sector shutdown” exception allowing a company to demand work now with only the promise to pay at a later date.2 Once an employee performs work, it must be paid promptly and in full on the next regular payday.
The Fair Labor Standards Act (FLSA) is the main federal law governing the payment of minimum wages and overtime. All states also have their own laws regulating wages and hours, and employers must follow whichever standard is most favorable to the...
Former Special Counsel Jack Smith delivered testimony Thursday before the House Judiciary Committee, defending his investigation into former President Donald Trump’s efforts to overturn the 2020 el...