As legal professionals working in some of the world’s biggest corporations and law firms, it’s important to understand the implications of a government shutdown on employers. The U.S. government is facing a potential shutdown, with federal appropriations set to expire at midnight (ET) on Saturday, September 30. If lawmakers can’t agree to a spending plan before then, much of the federal government will shut down, significantly affecting the timing and processing of new and pending cases.
According to JD Supra, agencies that rely on federal funding, such as the Department of Justice (DOJ), Equal Employment Opportunity Commission (EEOC), and National Labor Relations Board (NLRB), will likely vastly curtail operations, affecting litigation, investigations, and case adjudications. This reduction in operations can significantly delay the resolution of pending cases and put new case filings on hold indefinitely.
- The Department of Justice (DOJ): The DOJ may suspend civil litigation services, except for matters essential for the safety of human life and the protection of property. This can lead to substantial delays in civil enforcement actions and regulatory proceedings.
- Equal Employment Opportunity Commission (EEOC): Similar to the DOJ, the EEOC will likely suspend non-critical services. Complaint investigations, mediation sessions, and litigation activities will suffer delays. New discrimination complaints might not be processed until after the shutdown.
- National Labor Relations Board (NLRB): The NLRB will likely cease processing most unfair labor practice cases. This affects employers who are dealing with employee claims regarding illegal terminations, refusals to bargain, or other alleged illegitimate conduct by employers.
In conclusion, the possible government shutdown has the potential to broadly impact employers, particularly those who are currently dealing with federal agency investigations or lawsuits. Although it’s uncertain when normal processes will resume, it’s clear that the effects of the shutdown will be substantial and protracted. Employers are recommended to consult with their legal advisors to assess the potential impact and plan contingencies strategically.