Draft memos from the Office of Management and Budget (OMB) suggest that government employees may not be entitled to backpay for holidays missed during shutdowns.
According to a memo reported by Axios, the issue ties back to an interpretation of a 2019 law aimed at fair treatment for government workers, which was signed by President Trump amidst a previous shutdown.
The OMB’s memo contends that the law doesn’t guarantee backpay for all furloughed employees. It references specific lines in the law, stating that backpay is conditional upon meeting certain budgetary regulations designed to prevent lapses.
Efforts to deny backpay could lead to legal disputes initiated by employee unions. There’s also a conflict with guidance released by the Office of Personnel Management (OPM) last month regarding furloughed workers during the current shutdown.
This OPM guidance addresses common questions, including whether furloughed employees will receive compensation. It confirms that “yes,” once the lapse in funding ends, those who were furloughed will receive backpay for the periods they were affected. Retroactive payments will be issued, regardless of the original payroll dates.
This backpay issue is just one instance of the Trump administration’s contentious stance toward federal employees during the shutdown.
Officials at the White House have reportedly warned of potential widespread layoffs, recalling the impact of previous shutdowns which led to firings. White House press chief Karoline Leavitt expressed concern, noting, “We don’t want people to be fired, but unfortunately, if this shutdown continues, layoffs could be a reality.”
This week, the Senate marked the continuation of the government shutdown, with Democrats blocking the GOP’s clean stopgap funding bill for the fifth time.
Democrats are insisting that any funding bill must also extend the Affordable Care Act (ACA) premium tax credits, which are set to expire at the end of the year.





