Agencies are Preparing to not Pay Furloughed Feds

BULLETIN: Concerns Over Furloughed Federal Employees' Pay

Consultants at InformedFED have gathered alarming information from reliable HQ-level sources within various agencies. There is substantial discussion and planning underway to avoid paying furloughed federal employees. This situation is supported by significant evidence and recent reporting. Notably, it differs from previous furlough situations, even before the Government Employee Fair Treatment Act of 2019 mandated backpay for federal employees. The internal human resources and payroll furlough procedures appear to be significantly different this time.

Evidence of Agencies Preparing Not to Pay Furloughed Employees

The Trump administration has publicly changed its stance on whether furloughed employees should receive backpay if the government shutdown is resolved. Trump himself has suggested that even excepted employees—those forced to work without pay—should not be compensated, even after funding is restored.

New furlough notices recently sent out included the same introductory language as the original notices issued at the beginning of the shutdown. However, Government Executive obtained and reviewed new notices that reveal a significant difference: the new notices no longer assure employees that back pay would be guaranteed upon the shutdown's conclusion. The reporting byGovernment Executive is consistent with what our internal HQ sources have told us.*

Internal Processes Supporting Non-Payment of Furloughed Employees

Our sources provided InformedFED with specific examples of internal HR and fiscal processes that would enable agencies to categorize employees and calculate backpay using a payroll processor, such as DFAS. It is crucial to note that our internal sources are at the highest agency levels and are the experts tasked with developing these systems and processes. They are the actual "button pushers."

Examples of Internal Processes

• Coding Employees as Furloughed

All employees are coded in agency timecards as furloughed. This traditional method allows a payroll processor to apply a quick fix for backpay. Simply process payroll and authorize pay for all employees coded as furloughed. Previously, excepted employees were coded differently to ensure backpay or current pay for those required to work during a lapse in appropriations.

• Maintaining a "Second Set of Books"

Agencies are keeping separate tracking mechanisms apart from timecards to monitor employees who were "excepted" or "essential" and required to work. One agency was using Excel spreadsheets, while others developed specific SharePoint tracking mechanisms.

• Tracking Absences of Essential Employees

Some agencies are reportedly tracking the absences of essential employees who are required to work without pay. An agency official informed us that his agency was instructed to create corrected timecards that include these absences once the shutdown is resolved.

Reasons Behind the Different Processes

Two separate sources informed us that the Office of Personnel Management (OPM), which has not been a friend to federal employees, instructed agencies to develop methods that would enable the Trump administration to either 1) compensate all furloughed and excepted employees, 2) pay only a specific employee category while excluding others, or 3) withhold payment from all employees for the entire period of the appropriations lapse (no backpay). The internal HR and fiscal processes described would support this directive.

It's crucial to emphasize that during previous government shutdowns, agencies did not maintain "a second set of books" because the intention was always to pay all employees, whether furloughed or excepted.

In short, it is apparent that agencies are preparing to not pay furloughed federal employees at the direction of OPM and Trump himself. At this point, the outcome requires speculation.

Implications for Furloughed Employees

The implications of these actions are significant. Furloughed employees may find themselves in a precarious financial situation. The uncertainty surrounding their pay can lead to stress and anxiety. It's essential for employees to stay informed about their rights and the ongoing discussions within their agencies.

Understanding Your Rights

As a federal employee, it’s vital to understand your rights during a furlough. The Government Employee Fair Treatment Act of 2019 was designed to protect employees during such times. However, the current climate raises questions about the enforcement of these protections.

Staying Informed

Staying informed about the latest developments is crucial. Regularly check updates from reliable sources and engage with your union representatives. They can provide guidance and support during these challenging times.

Conclusion

As of the date of this post, we estimate the probability that furloughed federal employees will receive their pay to be approximately 2/3 (about 66%). Put another way, we estimate a 33% chance that furloughed federal employees will not be paid, notwithstanding the Government Employee Fair Treatment Act of 2019. Trump has made it clear he does not care about the law, even the law he signed himself. Essential employees required to work during the furlough stand a much better chance of receiving backpay. Finally, Trump has a long history of refusing to pay his employees. This fact is a matter of public record.