What Key Federal Agencies Are Doing and What Employers Need to Know Amid the Government Shutdown

The federal government has entered a shutdown as of October 1. All non-essential government functions are suspended, and non-essential federal employees are furloughed without pay. The impact, however, varies across agencies, thereby creating operational uncertainty for employers navigating regulatory obligations, investigations and active matters in federal agencies that are pending before federal courts.

Understanding the current landscape is essential. Here’s what employers need to know.

Equal Employment Opportunity Commission (EEOC)

The Equal Employment Opportunity Commission (EEOC) has suspended most of its operations, including interviews, mediations, hearings and investigations. The EEOC is not actively processing charges, appeals or FOIA requests. Outreach activities are also paused or significantly curtailed. However, statutory deadlines for filing charges of discrimination remain in effect and are not automatically extended except where specifically indicated. This means that individuals must still file within the applicable 180- or 300-day time frame, depending on the relevant law. 

National Labor Relations Board (NLRB)

The National Labor Relations Board (NLRB) is operating with limited personnel and is handling only emergency matters. Hearings and elections are postponed, and most case processing is suspended. The Board has announced that time periods for filing documents are tolled, meaning deadlines will be extended for the period of the shutdown, until normal operations resume.

Department of Labor (DOL)

The Department of Labor (DOL) has suspended most agency functions. A limited number of essential services continue to operate, such as emergency OSHA enforcement and certain benefits programs—including unemployment—where funding is available. Several sub-agencies, such as the Bureau of Labor Statistics, the Office of Administrative Law Judges, the Administrative Review Board, the Office of Foreign Labor Certification and the Office of Federal Contract Compliance Programs are fully closed. Routine services such as regulatory reviews, non-emergency investigations, compliance assistance and outreach are paused. Unlike the EEOC and NLRB, the DOL has not issued any specific guidance about currently pending deadlines. As such, employers are advised to assume deadlines remain in effect, comply where possible, and maintain records of compliance efforts throughout the shutdown.

Social Security Administration (SSA) 

The Social Security Administration (SSA) continues critical operations including the payment of benefits. However, non-essential functions, including certain hearings and claims processing, are delayed. These delays may impact verification of benefits and processing of employee disability claims.

Immigration Services

Immigration-related services are experiencing disruption as well. While U.S. Citizenship and Immigration Services (USCIS) continues to process applications funded by fees, delays in processing are expected in part due to dependencies on other agencies. This may affect the timely processing of I-129 petitions, H-1B petitions, H-1B extensions, H-1B change of employer petitions, E-3 petitions, H-2A petitions, and H-2B petitions, each of which rely on labor certification from the DOL as a  prerequisite to approval.

Additionally, E-Verify is currently unavailable, which impacts employment eligibility verification for new hires. ICE worksite enforcement actions, including raids and I-9 inspections are, however, expected to continue.

United States Federal Courts

The federal judiciary remains open and plans to continue paid operations through at least October 17. During this period, while courts may reschedule some hearings and filing dates involving agency attorneys, deadlines remain in place and parties should continue to comply with all court-imposed and statutory requirements. 

If the shutdown lasts through October 17, the courts then will continue only to the extent necessary to support Article III judicial powers.

Employer Guidance

The federal government shutdown presents real challenges for employers, especially those with active matters before federal agencies. By understanding which services are continuing, which are paused, and how deadlines may be affected, businesses can minimize risk and maintain compliance.

Employers should:

• Monitor Deadlines: While many deadlines are tolled, keep records of all filings and correspondence. When in doubt, submit documents as usual and retain proof.
• Continue to Abide by Court-Imposed and Statutory Deadlines: While delays are expected, statutory and all court-imposed deadlines remain in effect.
• Stay Updated: Agency websites and contingency plan pages are the best source for real-time information.
• Plan for Delays: Expect longer timelines for agency responses, hearings, and processing. Adjust internal workflows and communicate with affected employees.
• Document Communications: Retain copies of all communications with agencies in case of future disputes over timing or compliance.
• Prepare for Restart: Once the government resumes full operations, review any new guidance and re-engage with agencies on pending matters promptly.

If you have questions or need advice or guidance, please contact Sarah Smith-Clevenger or any member of the Phelps Labor and Employment team.