Federal Employee Furloughs: Types and Implications

Federal Employee Furloughs: Types and Implications

December 15, 2020
Federal Employee Furloughs: Types and Implications
Federal employees perform complex duties in pursuit of the
Procedures. The Office of Management and Budget
diverse missions of their agencies. Some outcomes of the
(OMB) and OPM outline procedures for shutdown
federal budget process have significant implications for
furloughs (see “Selected References” box). A shutdown
employees. Among other impacts, certain budgetary
furlough is considered to be an adverse action, which
situations may result in employee furloughs (i.e., placement
provides employees with certain notice and appeal rights
in temporary non-duty, non-pay status because of lack of
under applicable regulations (5 C.F.R. Part 752, relating to
work or funds). Furloughs affect how agencies perform
adverse action procedures). Agencies are responsible for
their missions and may affect the well-being of employees.
notifying employees of the furlough as soon as possible. In
This In Focus discusses the two types of furloughs as well
contrast with administrative furloughs, the length of a
as related procedures, case studies, and some potential
shutdown furlough does not affect the furlough’s
issues for Congress.
implementation procedures. OPM guidance explains : “For
most employees, shutdown furloughs lasting 30 calendar
Two Types of Furloughs
days or less (22 workdays) are covered by … adverse action
The term furlough refers to two types: shutdown furloughs
procedures.” Shutdown furloughs lasting longer than this
(also called emergency furloughs) and administrative
duration are also covered by adverse action procedures
furloughs (also called money-saving furloughs). Both types
instead of RIF procedures, because the ultimate duration of
involve placement of an affected employee in a temporary
a shutdown furlough is not known in advance. OPM
non-duty, non-pay status because of lack of work or funds
advises, “When the shutdown furlough goes beyond 30
or other non-disciplinary reasons but with continued
days, agencies should treat it as a second shutdown
benefits under certain conditions. Because furloughs are
furlough and issue another adverse action or furlough
temporary, they may be distinguished from the permanent
notice.”
separation of employees (e.g., through permanent
reductions in force (RIFs)). The Office of Personnel
Pay. Before 2019, employees who were furloughed during
Management (OPM) has provided detailed guidance to
a shutdown were not entitled to retroactive pay for the days
executive agencies on both types of furloughs, including
furloughed. After an extended shutdown in FY2019,
related topics such as pay, leave, and benefits during
however, Congress and the President enacted the
furlough status. However, the two types of furloughs differ
Government Employee Fair Treatment Act (P.L. 116-1),
in several respects, as discussed below.
which statutorily requires retroactive pay for furloughed
employees following the end of a lapse in appropriations
Shutdown (“Emergency”) Furloughs
(31 U.S.C. §1341(c)).
Statutory framework. Shutdown furloughs are generally
governed by provisions known as the Antideficiency Act
Leave and benefits. The Antideficiency Act requires
including, Title 31, Sections 1341-1342, of the United
agencies to cancel paid time off scheduled during a
States Code. Among other things, this law generally
shutdown furlough. In many situations, a shutdown
prohibits agencies from accepting voluntary services and
furlough would not affect the accrual of annual leave and
employing personnel services exceeding those authorized
sick leave. OPM guidance explains , “If an employee is
by law, “except for emergencies involving the safety of
furloughed (i.e., placed in non-pay status) for part of a
human life or the protection of property” (31 U.S.C.
biweekly pay period, the employee’s leave accrual will
§1342). In a shutdown, an agency may suddenly lack
generally not be affected for that pay period.” However, a
authority to obligate and spend certain funds due to a
lengthier shutdown furlough may affect the accrual of
temporary lapse in annual appropriations or the expiration
leave. Generally, benefits such as health insurance continue
of an authorizing act that provides access to certain funds.
during a shutdown furlough. However, federal employees
When a lapse in funding occurs, the law requires agencies
may need to wait until they are returned to pay status before
to cease activity and furlough employees, with some
they can adjust their benefits.
exceptions. For employees who are paid from affected
funds, some employees by law may be “excepted” from a
Case study: FY2014 shutdown. A funding gap began on
shutdown furlough. For example, employees whose duties
October 1, 2013, the first day of FY2014, that resulted in a
involve the safety of human life or the protection of
shutdown furlough of many federal personnel. The
property may be told by an agency to come to work during
shutdown lasted 16 full days until an interim continuing
the period of time in which funds are lapsed or unavailable.
resolution resumed funding. Initial reports suggested, based
Employees who are funded by other, non-lapsed sources of
on the contents of agency shutdown plans, that 800,000 or
funding may be called “exempt” from a shutdown furlough.
more executive branch employees had been furloughed.
Three weeks after the shutdown terminated, OMB released
a retrospective report that indicated that the shutdown
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Federal Employee Furloughs: Types and Implications
resulted in the furlough of “roughly 850,000 employees per
duration. Generally, OPM advises that employees retain
day” at its peak in the first few days of October, or
their health insurance and life insurance coverage as long as
approximately 40% of the federal civilian workforce. The
their salaries remain sufficient to pay the premiums.
number of furloughs varied over time, because agencies
adjusted employees’ “excepted” status in response to
Case study: FY2013 sequestration. In March 2013, the
changing circumstances.
President ordered a sequester (i.e., across-the-board
spending reductions) of non-exempt programs, activities,
Administrative (“Money-Saving”) Furloughs
and accounts pursuant to the Budget Control Act of 2011
Statutory framework. Under federal appropriations law,
(P.L. 112-25). One way in which many agencies addressed
agencies have some discretion over how to allocate funds
these budget cuts resulting from the FY2013 sequester was
within a budget account and very limited discretion to
to use administrative furloughs. CRS is not aware of overal
reallocate funds across budget accounts. Agencies may
executive-branch-wide statistics associated with
attempt to exercise this discretion during budget execution.
sequestration-related furloughs. In 2014, however, the
In response to budget situations, agencies may need to
Government Accountability Office (GAO) reported, “Seven
implement administrative furloughs in order to function
of the [23 large] agencies that we reviewed furloughed a
within available funding in carrying out their missions.
combined total of more than 770,000 federal employees for
OPM guidance explains that “an administrative furlough is
1 to 7 days.” Subsequently, OPM’s web page on furloughs
a planned event by an agency which is designed to absorb
currently indicates, “Furloughs that would potentially result
reductions necessitated by downsizing, reduced funding,
from sequestration would generally be considered
lack of work, or any budget situation other than a lapse in
administrative furloughs.”
appropriations.”
Issues for Congress
Procedures. When implementing an administrative
The use of furloughs raises a number of questions for
furlough, agencies consider funding-related circumstances
Congress. To what extent do furloughs affect employee
and mission priorities in determining which employees may
morale, engagement, and retention and agency performance
be affected. The agencies are responsible for notifying the
and efficiency? Can furloughs be avoided through choices
selected employees that the administrative furlough applies
in the budget process?
to them. OPM guidance includes sample letters that notify
an employee of an administrative furlough. Agencies may
In addition, shutdown and administrative furloughs may
have considerable discretion in implementing
each pose different potential issues for Congress related to
administrative furloughs. The furlough days may be
oversight and legislation:
scheduled consecutively or discontinuously. For example,
OPM advises, “An agency may furlough employees for 1
 Shutdown furloughs. What are the criteria for
day a pay period for a finite period of time, designate a
designating employees as “excepted” from furlough?
number of furlough hours, shut down the entire agency for
Are agencies correctly complying with the
a defined number of days, designate specific dates as
Antideficiency Act? Are agency shutdown plans being
furlough days off, or allow employees to select their own
properly developed and implemented?
furlough time off.”
 Administrative furloughs. How do agencies determine
The duration of an administrative furlough has implications
which employees are furloughed? To what extent are
for the types of procedures used to implement the furlough.
agencies authorized to use budget transfer authorities to
OPM refers to two different types of administrative
avoid administrative furloughs? Are agencies using
furloughs: short furloughs and extended furloughs. A short
transfer authorities appropriately?
administrative furlough does not extend past 22 work days
or 30 calendar days and follows adverse action procedures
Selected References
(5 C.F.R. Part 752). Extended administrative furloughs
lasting longer than 22 work days or 30 calendar days follow
OPM, “Pay & Leave: Furlough Guidance,” at
RIF procedures (5 C.F.R. Part 351). In this context, OPM
https://www.opm.gov/policy-data-oversight/pay-leave/furlough-
guidance advises that “a furlough is a temporary placement
guidance/ (web page links to detailed PDF files below).
in non-pay/non-duty status; it is not a permanent separation
OPM, Guidance for Shutdown Furloughs, September 2015 (PDF).
from service,” even when RIF procedures are used to
OPM, Guidance for Administrative Furloughs, March 2017 (PDF).
implement the furlough.
5 U.S.C. §§3501-3503; 5 C.F.R. Part 351 (RIF procedures).
Pay. Administrative furloughs reduce an agency’s
5 U.S.C. §§7511-7515; 5 C.F.R. Part 752 (adverse action
personnel costs, because employees are not required to be
procedures).
paid for furlough days and, in practice, are not paid for
CRS Report RL34680, Shutdown of the Federal Government:
these days. This is one way to constrain spending in order
Causes, Processes, and Effects, coordinated by Clinton T. Brass.
to absorb a reduction in funds.
GAO, 2013 Sequestration: Agencies Reduced Some Services and
Investments, While Taking Certain Actions to Mitigate Effects,
Leave and benefits. During furlough days, employees are
GAO-14-244, March 2014.
not permitted to take paid leave. Administrative furloughs
do not generally impact the accrual of annual or sick leave
but may affect the accrual of leave if they are longer in
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Federal Employee Furloughs: Types and Implications

Taylor N. Riccard, Analyst in Government Organization
and Management
IF11703

Disclaimer
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