How the Government Shutdown Affects Employment-Related Agencies and How Employers Can Be Proactive During a Shutdown

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Since October 1, 2025, the federal government has been shutdown, and there is no resolution in sight. As a result, federal employment agencies and courts are operating at limited capacity, focusing only on essential operations and contingency plans, while the majority of staff are or will be furloughed, leaving employers with uncertainty about compliance matters. Here is a summary of how the shutdown has affected the agencies and courts most involved in employment-related issues, and how employers can proactively maintain compliance while the government is shutdown.

The U.S. Equal Employment Opportunity Commission (EEOC) continues to operate with 95% of its workforce furloughed. While new discrimination charges are being submitted to preserve deadlines and timeliness, all investigations, mediations, hearings, and Freedom of Information Act (FOIA) requests are at a standstill during the shutdown. Employers can expect a significant backlog once operations resume.

The Department of Labor (DOL) has also furloughed a significant number of its workforce—3,141 out of 12,916 employees. While most regulatory and enforcement activities at the Wage and Hour Division have ceased, alleged child labor violations are being investigated. Standard investigations, compliance audits, and technical assistance are at a halt. Meanwhile, the Office of Federal Contract Compliance Programs has suspended operations entirely.

The National Labor Relations Board (NLRB) is only engaging in government activities necessary to prevent an imminent threat to human life or to protect property. Therefore, there is no processing of new representation petitions, union elections and administrative hearings are postponed, and all case investigations and public outreach are on hold. Additionally, the NLRB has paused all filing deadlines for the duration of the shutdown.

The Occupational Safety and Health Administration (OSHA) has limited its operations to focus on inspections of imminent threats to human life and investigations of workplace fatalities. All programmed inspections, compliance assistance, training classes, rulemaking, and outreach programs have ceased.

Federal Courts

Since October 20, 2025, the judicial branch has lacked funding to sustain full, paid operations.  Although federal judges will continue to serve in accordance with the Constitution, federal courts are now operating with limited operations. Currently, the Case Management/Electronic Case Files (CM/ECF) system is operational, allowing filings and access to court documents.

However, if the shutdown continues, other court operations may be scaled back. Employers should pay attention to the local federal courts, as individual courts handle cases differently. Some district courts may automatically stay all civil litigation involving government lawyers. In contrast, other courts may proceed on a case-by-case basis.

Employers’ Obligations Amid Shutdown

The government shutdown provides uncertainty for employers. However, employers should proceed with business as usual and uphold their legal obligations.

Employers may take this time to conduct internal compliance audits, review and follow up on any discrimination or harassment complaints, and take further steps to enhance workplace safety.

Conclusion

The shutdown shows no clear end in sight. Consequently, employers should prepare for significant delays in government services. They should also expect agencies to face backlogs, which will delay investigations and adjudications. Additionally, employers should stay compliant or proactively work to maintain compliance during the shutdown.