October 28, 2025 • News

Federal Government Shutdown: What Does It Mean for Private Employers?

As the federal government shutdown nears the one-month mark, federal employment-related agencies are at limited to zero capacity, focusing on essential operations only. 

The National Conference of State Legislatures’ “Federal Government Shutdown: What It Means for States and Programs” provides an overview of the impact on discretionary programs, mandatory programs, and key department and agency impacts. 

(Agencies have also published contingency plans: USDOL Plan for the Continuation of Limited Activities During a Lapse in Appropriations; EEOC Contingency Plan in the Event of Lapsed Appropriations; and NLRB Contingency Plan for Shutdown in the Absence of Appropriations.)

But what does this mean for private employers trying to operate with as much normalcy as possible? Employers should:

• Prioritize communication with employees. Hear their questions and concerns.
• Document all federal compliance efforts. 
• Expect delays in any workflow involving federal agencies and plan accordingly. Federal courts are operating in limited capacity; employers with pending federal litigation should check with their attorney and their specific court for status. 
• Maintain all internal compliance policies and procedures, such as workplace investigations.
• Plan a recovery strategy for the end of the shutdown.