Potential impact of federal government shutdown on employers

By National Roofing Contractors Association.

With lawmakers in Congress and President Trump currently unable to reach an agreement regarding legislation needed to fund the federal government, federal agencies have begun to operate indefinitely under a government shutdown.

Congress and the administration failed to agree on legislation to fund the government by October 1, 2025, the start of the fiscal year, prompting the first government shutdown since 2019. It is unclear how long the political impasse and resulting government shutdown will last.

The U.S. Office of Personnel Management announced recently that, “Due to a lapse in appropriations, federal government operations vary by agency.” Most agencies will likely operate indefinitely with only employees and functions deemed "essential" by the administration and more information is expected to be announced soon.  

Potential effects of a federal government shutdown on employers may include but are not limited to the following: 

• Federal contractors and subcontractors could be affected, as federal construction projects and solicitations may be delayed because government supervisors may be furloughed. Employers are encouraged to reach out to their contracting officer or agreements officer to seek direction on any federal contracts being performed.  
• Most employees of the Dept. of Labor are expected to be furloughed until the government reopens. Employers are reminded that federal laws and regulations remain in effect despite potentially reduced enforcement activities. 
• In past shutdowns, the federal E-Verify program to electronically verify the work authorization status of new hires has been inoperable and suspended. Employers are still required to complete Form I-9 regardless of the availability of E-Verify. Employers that use E-Verify should consult the website of U.S. Citizenship and Immigration Services for guidance here: https://www.e-verify.gov/
• The processing of employment-based visas or work authorization documents at the Dept. of Homeland Security and/or Dept. of Labor may be substantially delayed. 
• Most Small Business Administration programs are likely to be inoperable during any shutdown. 
• Federal economic and employment statistics may not be issued until the government resumes full operation.

The National Roofing Contractors Association (NRCA) will continue to closely monitor this situation and provide more information as it becomes available.