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Workplace Ramifications of the Government Shutdown
The federal government shutdown impacts private-sector employers regardless of their reliance on, or partnership with, the federal government. In a recent SHRM survey, nearly half of the human resource professionals who responded indicated their employer was unprepared for a shutdown and had “minimal or no plans in place.” The same survey noted anticipated decline in employee morale, increased workplace stress and reduced productivity as a result of the shutdown. Ironically, the government shutdown likely increases the human resources department workload.
How a Government Shutdown Affects Agencies.
The current federal government shutdown began on October 1, 2025, when the federal fiscal year ended without a new appropriations bill or a stopgap funding measure. All federal agencies are limited in their operations during the current government shutdown with certain agencies remaining more active than others, depending upon agency-specific shutdown plans.
Occupational Safety and Health Administration
The Occupational Safety and Health Administration (OSHA) is still inspecting imminent danger situations, workplace fatalities and catastrophes, complaints involving serious safety and health risks, and processing abatement of previous high gravity serious violations. Employers in the 22 states that maintain State Plans to enforce private sector workplace safety regulations, which include Michigan and Indiana, will see no changes during the government shutdown. All employers should continue submitting severe injury reports, when appropriate, and all employers should still timely file notices of contest for federal OSHA citations within the 15 working day statutory deadline despite the fact that informal conferences may not be held prior to the notice of contest deadline.
Equal Employment Opportunity Commission
The Equal Employment Opportunity Commission (EEOC) will continue to accept new charges of discrimination during the shutdown but will not investigate charges and will not actively litigate pending cases. EEOC mediations are cancelled and EEOC staff are currently unavailable to provide compliance assistance or otherwise respond to employer correspondence or phone calls. However, the Ohio Civil Rights Commission (OCRC) still is fully functional, continues to investigate charges and is not impacted by the federal government shutdown. Regardless of the federal government shutdown, employers should remain cognizant of their legal obligations to promptly, thoroughly and impartially investigate any internal complaints of discrimination and/or harassment.
U.S. Department of Labor
The U.S. Department of Labor (DOL) has stopped all technical assistance and compliance audits. Child labor investigations and mine and other hazardous workplace investigations will continue as will unemployment insurance benefits and other benefits support. The DOL has indicated that it will not process foreign labor certification applications necessary for nonimmigrant visas, resulting in delayed processing of visa applications.
National Labor Relations Board
The National Labor Relations Board (NLRB) has ceased case handling and only a handful of high-level NLRB officials are currently working during the shutdown.
In addition to increased workplace stress and reduced employee morale, nearly one-half of the SHRM survey respondents expected that the business would miss annual financial goals if the shutdown exceeded one week. Therefore, while much of the federal government remains on shutdown, human resources departments must address associated and unanticipated workplace challenges. It appears there is no rest for the weary.
Mr. Yates is a member and Ms. Robinson is an associate in the Labor & Employment practice group. They partner with human resource professionals to make workplaces better (and legally compliant). To contact them, please call 419-241-6000 or e-mail jbyates@eastmansmith.com and jlrobinson@eastmansmith.com.
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Disclaimer: This alert has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.