Federal Employees: Anticipated Timeline for Back Pay After Shutdown

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Federal Employees: Anticipated Timeline for Back Pay After Shutdown

After the recent conclusion of the longest government shutdown in U.S. history, federal employees are preparing to return to work and receive their overdue compensation. The Office of Personnel Management (OPM) has issued guidelines to assist agencies in facilitating updates on pay, benefits, and leave for those affected by the shutdown.

Timeline for Federal Employees’ Back Pay

The anticipated timeline for back pay varies significantly based on different agency payroll providers and pay schedules. Here’s a breakdown of when federal employees can expect their retroactive payments:

  • Saturday: Employees from the General Services Administration and OPM.
  • Sunday: Employees from the Departments of Veterans Affairs, Energy, Health and Human Services, and civilian personnel from the Defense Department.
  • Monday: Employees from the Departments of Education, State, Interior, and Transportation, along with several independent agencies including the Environmental Protection Agency and NASA.
  • Wednesday: Employees from the Departments of Agriculture, Commerce, Treasury, Labor, Justice, Homeland Security, Housing and Urban Development, and the Small Business Administration.

The National Finance Center, a payroll provider, confirmed that agencies utilizing its services should make deposits by mid-next week.

Back Pay Calculations

According to OPM, furloughed employees will receive their standard pay for hours they were scheduled to work. However, exceptions apply for instances involving scheduled overtime, where affected employees should receive premium rates. OPM also stated that allowances and other types of payments should be equivalent to what they would have earned if continuously working.

  • Standard Pay: For regular hours missed due to the shutdown.
  • Overtime Pay: Premium rates for previously scheduled overtime hours.
  • Allowances: Paid as if employees had not been furloughed.

Exclusions from Back Pay

While most furloughed employees are eligible for back pay, certain exclusions apply. If an employee was already in a non-pay status before the shutdown, they will not receive back pay. Similarly, excepted employees who took unauthorized absences will not be compensated for those days.

Leave Status and Adjustments

Furloughed employees will have their leave accrual adjusted as if they were in pay status during the shutdown. Although excepted employees continued to accrue leave, adjustments will be made to reflect their leave banks accurately. Agencies will also have the discretion to provide options such as personal leave or modified work schedules for employees returning to work.

Impact of Reductions in Force

In addition to back pay provisions, the funding agreement also addresses the rescission of approximately 4,000 reductions in force (RIFs) initiated since October 1. These measures will temporarily safeguard federal employees from further RIFs until at least the end of January.

As federal agencies work diligently to reinstate furloughed employees, OPM has reinforced its commitment to ensuring timely payments and necessary adjustments. The effect of the shutdown has impacted over 670,000 furloughed employees and 730,000 personnel who continued to work without compensation. This crucial support will aid federal employees on their pathway back to normalcy.