What a Government Shutdown Means for Employers: Many Agencies Will Sharply Curtail Operations, Delaying New and Pending Cases

Federal appropriations are set to expire at midnight (ET) on Tuesday, September 30. Unless lawmakers agree to a spending plan before then, much of the federal government will shut down. And most federal agencies will stop all but their most essential operations:

• Many agencies will stop processing charges and investigations.
• Most of them will cancel hearings and reschedule them when the government reopens.
• Most will shutter their public-information offices, making it difficult if not impossible for employers to get updates about their cases or other agency activities.
• Many agencies will close their regulatory groups, delaying any new rules, guidance, or regulations.

Below, we break down these effects agency by agency. But the most important thing for employers to know is that, if the government shuts down, they can and should expect delays in everything from case processing to business travel. Moreover, many agencies have not yet updated their shutdown contingency plans; the information below is derived from the most recent plan available. Finally, it is unclear whether the White House will carry out its threat not merely to furlough non-essential personnel (meaning they would return to work when the government ultimately reopens) but instead fire them permanently; it is also unclear whether such an effort would be upheld by the courts. Littler’s Workplace Policy Institute will keep readers apprised and attempt to update the below as circumstances warrant.

Department of Labor (DOL)

According to the most recent DOL contingency plan (dated September 26, 2025), the agency will curtail its enforcement and regulatory efforts. It will continue to do what it sees as necessary to protect safety, health, and property, such as investigating child-labor violations, processing certain benefits payments, and supporting federal and state unemployment programs. But it will not offer any technical assistance, conduct compliance audits, or prepare for congressional oversight. The agency will hold no administrative hearings and will shutter multiple subagencies, including the Bureau of Labor Statistics, the Office of Administrative Law Judges, and the Office of Federal Contract Compliance Programs. This means, for example, that the scheduled release by the Bureau of Labor Statistics of its jobs report on Friday will be suspended during any shutdown.

DOL will also pause all regulatory efforts. That last item could affect several DOL initiatives, including a proposed rule to repeal its 2024 rule changing the Fair Labor Standard Act’s definition of independent contractor; OSHA’s proposed heat standard and lock-out/tag-out update; and proposed rules to address the definition of joint employer under the FLSA, as well as the current exemption for certain companion care services. 

Equal Employment Opportunity Commission (EEOC)

The EEOC’s most recent contingency plan (undated) indicates that the EEOC will cease all nonessential operations. It will do only what it needs to do to make sure claimants preserve their right to file a timely charge of discrimination or to request an appeal or reconsideration. It will also continue to litigate in cases where the court has not granted an extension. The agency will continue to accept charges through its online portal. In addition, the EEOC will screen those charges to identify cases in which a deadline is about to expire or that involve threats to life or property. But otherwise, it will not start new investigations, hold hearings or mediations, investigate nonessential charges, hold outreach programs, or process FOIA requests. Additionally, it will not respond to questions about pending cases.

The Commission does not address filing deadlines in its shutdown plan. But after the last government shutdown in late 2018, the EEOC rescheduled hearings, mediations, and interviews when it reopened. It also automatically extended filing deadlines for position statements and other information requests. We expect the EEOC to handle deadlines in a similar way after the coming shutdown.

National Labor Relations Board (NLRB)

The NLRB will likewise cease all nonessential activities. According to its most recent contingency plan, it will not process new representation petitions or unfair labor practice charges. It will pause administrative litigation and will not hold administrative hearings. In the past, NLRB administrative law judges have indicated that in the event of a shutdown, hearings will be canceled, and cases will be continued until the government reopens.

The NLRB’s single member will continue working. As presidential appointees, the members are exempt from federal laws requiring agencies to discontinue most of their activities during a shutdown. So, the members may continue to make progress on pending cases, but they will be operating with a skeleton staff: the Board’s plan lists only six employees who will support the Board members during a shutdown. As a result, the members’ output may be minimal.

Immigration

US Citizenship and Immigration Services (USCIS). Generally, USCIS operations are funded by user fees and should not be directly impacted by a government shutdown, and the agency is expected to continue to accept and process petitions and applications for immigration benefits. Field offices are likely to remain open, albeit with more limited staffing in some instances. Notably, however, the agency’s E-Verify system will likely not be operative during the pendency of the shutdown. Importantly, the inability to access E-Verify does not affect an employer’s obligation with respect to I-9 forms, which must still be completed no later than the third business day after an employee’s first day of employment.

Customs and Border Protection (CBP) / Immigration and Customs Enforcement (ICE). CBP and ICE are generally considered to be essential personnel, and most of the agencies’ employees are expected to be retained during a government shutdown. 

Littler’s detailed analysis of the effects of a shutdown on the range of agencies involved in immigration matters may be found here.

Department of Justice (DOJ) 

Criminal litigation will continue without interruption as an activity essential to the safety of human life and the protection of property. DOJ has also indicated that it considers domestic and international extraditions necessary to protect life and property and therefore excepted. The agency will deprioritize civil litigation where doing so will not compromise the safety of human life or the protection of property. It will ask for continuances in pending cases and will not bring new cases unless necessary to protect life or property. 

The U.S. Court System

For now, the U.S. court system will remain open. Courts have independent funding: they can operate by drawing on the money they collect through filing fees and other charges. In contrast to prior years, where the courts were able to operate as normal for several weeks, the Administrative Office of U.S. Courts has indicated that it would plan to maintain normal operations through October 3, 2025; after that date, significant services may be curtailed and limited to those necessary to exercise the courts’ constitutional functions and address emergencies. Notably, the U.S. Supreme Court has indicated that it expects to rely on permanent funds not subject to annual approval to maintain normal operations for the foreseeable future.

The details of those reductions will be left up to individual courts and administrators.

Courts typically announce any changes in services or schedules on their websites. Littler is monitoring court websites to determine disruptions to upcoming appearances and deadlines.

Other Complications

The shutdown could affect employers in other ways beyond the shuttering of federal agencies or reductions in courthouse operations. For example, some employers, such as government contractors, may choose to furlough workers during the shutdown. Others may consider voluntary or mandatory paid leave. Those choices could raise additional legal issues under state and federal WARN acts, as well as wage-and-hour laws. These issues are likely to be complex and fact-specific. Employers should work with experienced counsel to understand their rights and obligations.

As we approach the shutdown, these issues will evolve. New complications are likely to arise if Congress is unable to come to a resolution quickly. WPI is following the situation closely. We will keep our clients informed about significant developments.