When Congress fails to pass appropriations, the federal government shuts down. For employees and contractors, that means furloughs, missed paychecks, uncertainty, and stress. But what many don’t realize is this: you still have legal rights during a shutdown.

At the National Security Law Firm, we represent federal employees and contractors nationwide in shutdown-related disputes—furlough appeals, RIF challenges, clearance defense, and more. This guide breaks down your key rights so you know where you stand when the government stops working.

Your Right to Be Paid

  • Federal employees — Under the Government Employee Fair Treatment Act of 2019, all excepted and non-excepted employees are guaranteed back pay once appropriations resume.

  • Contractors — Unlike federal employees, contractors are not automatically guaranteed back pay. Whether you receive compensation depends on your contract. Contractors may have rights to wage claims or breach-of-contract remedies if their employer mishandles pay.

  • Premium pay and benefits — Your back pay must include overtime, night differential, and holiday pay you would have earned. Errors here can be challenged.

Your Right to Benefits

Even when the government shuts down, most benefits continue:

  • FEHB (health insurance) — Coverage continues during a shutdown. Missed premiums are collected later.

  • FEGLI (life insurance) — Coverage also continues uninterrupted.

  • Retirement and TSP contributions — These must be restored once back pay is processed. If contributions are mishandled, you have a right to correction.

Agencies sometimes get this wrong. Employees can pursue administrative claims and even litigation to recover benefits.

Your Right to Challenge Furloughs

Shutdown furloughs are governed by the Antideficiency Act. Agencies decide who is “excepted” (must work without pay) and who is “non-excepted” (furloughed). But those decisions must follow rules:

  • Notice — Employees must receive advance notice of furlough status.

  • MSPB Appeal Rights — Employees can appeal furloughs of 30 days or less to the Merit Systems Protection Board (MSPB).

  • Classification Errors — If you were wrongly designated non-excepted, you may have grounds for a challenge.

  • Prohibited Personnel Practices — If furlough decisions were discriminatory or retaliatory, you can bring claims through the EEOC, OSC, or MSPB.

Your Right to Contest a RIF

The Trump administration has signaled that agencies should treat this shutdown as an opportunity for permanent Reductions in Force (RIFs). This is new territory—but you still have rights:

  • Procedural Protections — Agencies must follow strict RIF procedures, including retention registers, veterans’ preference, and 30 days’ notice. Errors here can invalidate a RIF.

  • Challenging Pretext — If a RIF is really retaliation or discrimination, you can contest it as a prohibited personnel practice.

  • MSPB Appeals — RIF separations are appealable to the MSPB, though courts often defer to agencies if procedures are followed.

Your Right to Be Free from Retaliation

A shutdown does not suspend whistleblower or discrimination protections. Employees retain the right to:

  • Report waste, fraud, or abuse.

  • Oppose discrimination or prohibited personnel practices.

  • File grievances, complaints, or appeals.

  • Engage in union or collective activity.

If you face furlough, reassignment, or termination for these reasons, you may have a retaliation claim.

Your Right to Protect Your Security Clearance

Shutdowns often trigger financial strain, which can lead to missed payments or mounting debt. These in turn raise Guideline F: Financial Considerations issues in clearance adjudications. You can mitigate these risks by:

  • Documenting that debts arose during a shutdown.

  • Communicating with creditors and arranging payment plans.

  • Seeking legal help to frame mitigation in SOR or LOI responses.

Clearance-holders should never wait until reinvestigation to address shutdown-related financial issues.

How NSLF Protects You During a Shutdown

The National Security Law Firm is the nation’s leading advocate for federal employees and contractors caught in shutdown chaos. We help by:

  • Reviewing furlough and RIF notices for legal errors.

  • Filing appeals with the MSPB, EEOC, and OSC.

  • Correcting payroll and benefits errors.

  • Protecting security clearances from financial fallout.

  • Representing contractors in wage and contract claims.

  • Fighting retaliation and prohibited personnel practices.

Why Choose NSLF?

  • Insider expertise — Our attorneys include former JAG officers, federal agency lawyers, and clearance adjudicators.

  • 4.9-star Google reviews from employees and contractors nationwide.

  • Located in Washington, D.C., the hub of federal employment and clearance law.

  • Flexible legal financing with 3–24 month plans so you can act now, not later.

  • Mission-driven: We fight to maximize outcomes and protect careers when the stakes are highest.

National Security Law Firm: It’s Our Turn to Fight for You.

Ready to Take the Next Step?

If you’re a federal employee or contractor worried about your rights during this shutdown, don’t wait. Agencies move quickly, and deadlines for appeals are short.

📞 Book a $500 one-hour consultation online today. We’ll review your situation, explain your options, and build a strategy to protect your career.

The shutdown may be out of your control. Defending your rights isn’t.

More Shutdown Resources for Federal Employees

The shutdown raises many legal questions beyond RIFs. We’ve built a series of guides to help you understand your rights and options:

Each post dives deep into a different issue—together, they form the most comprehensive resource online for federal employees navigating a shutdown.