Today’s newsletter concerns the furlough of government employees. By all accounts the shutdown will happen. If it is averted, by some miracle or tragedy, the considerations in this piece will take the form of a caution for those who have not prepared sufficiently for misfortune. At the same time that government is seen as a stable form of work, in which to do a job, be compensated for it, and earn a pension for one’s retirement, government jobs are also subject to the whims of politics. And politics, these days, are about as whimsical and capricious as they’ve ever been.

THE BIG STORY

Some Things to Consider if You’re Furloughed

Many employees will be furloughed when the government shuts down. How will that affect them?

With a government shutdown looming, many government employees are staring at an uncertain number of weeks or (God forbid it) months without pay or employment. The term for this is “furlough.” All employees will not face furlough. But those who do will find that the process is a great inconvenience while it lasts — possibly even a hardship, depending on their living and family situation.

There isn’t a lot one can do to prepare before October 1, when the shutdown is expected to commence. Here are some things to consider or nail down beforehand, if one is a government employee (or, in my case, married to one). In all cases, I’ve drawn the knowledge from this helpful document published by the Office of Personnel Management, conveniently titled: “Guidance for Shutdown Furloughs.”

Will I be furloughed?

The first thing to do is determine whether you (or your spouse) is affected. Not all government employees work in places that are funded in such a way that the government shutdown will require them to be furloughed. Some work in places that are funded, that will shut down, but due to the nature of their work, they are excepted from furlough, and will continue working. In most cases it ought to be pretty clear whether you will continue working or not. In those cases where it is unclear, clarify that with one’s supervisor or their supervisor ASAP.

What does furlough mean?

Furlough, in basic terms, is a bizarre state of non-employment during which one retains the rights to one’s job, but is prohibited from carrying out any of its functions, and is not paid for one’s time (but is compensated for that time when furlough ends).

While furloughed, a person cannot take leave (one can go on vacation), or retire, or volunteer to do one’s work so as not to fall behind. One cannot travel for work, or access one’s work computer. One is not unemployed, one is “on furlough.” If this sounds pedantic and tedious, well, it is. But it’s useful to understand in detail what one can and cannot do, and why, because this can have pretty big consequences.

For example, there are conditions under which a person can get a second job while a government employee, and conditions under which that is not permissible. It could be the case that a person needs, for their mental health, to work or to volunteer. It could be the case that a person needs money for any number of expenses, and cannot abide by “furlough” without any income for weeks or months. In any event, now is the time to line up permission to seek out temporary secondary employment, if that’s permitted (it isn’t always permissible), in case that becomes necessary during furlough for whatever reason.

At the same time, if one does find secondary temporary employment, remember that at the end of furlough, when the government reopens, one will be compensated for one’s time; it will be as though one was working the whole time. One will be paid for one’s non-services. This can have tax implications.

What are some other considerations that might not occur to me?

Were you considering taking leave in October? It will be canceled when one is furloughed; furlough trumps every other state of employment one might encounter (with the exception of an uncompensated leave of absence). In practical terms this only affects people who had planned on taking “use-or-lose” leave that would disappear after October. This leave can be restored, but if somehow it had previously been restored from a lapse in appropriations, it is irrevocably lost and cannot be reinstated after furlough ends. For more on this subject, refer to section F, subsections 10 and 11 of the document linked earlier in this post.

People who expected to retire during this time may also be adversely and unfortunately impacted, both by the inability to be paid for leave, and by how they could be compensated for retirement — if they were expecting a lump sum payment, that will not get paid out until the furlough ends.

What about medical coverage?

Federal employees remain covered, but premiums that aren’t being paid by the individual during this time will be taken out from future paychecks. This question and those like it are covered in section H.

So what’s the bottom line?

In many cases, if one has enough money in the bank to endure for the duration of furlough, a month or two of furlough can work to your advantage. One can travel, or volunteer, or just hang out at one’s house. For those who are financially stable, this is at best a mild inconvenience.

If on the other hand your life is carefully but precariously balanced in a way that each paycheck is crucial — if one has kids in school, and a mortgage, and responsibilities — the furlough could be a real source of concern and hardship. In some senses, it’s already too late for drastic steps — the shutdown is imminent. Call around to your network now to set up help if that’s needed to get through a month or two. Assume the worst while hoping for the best. And remember this moment for the future; government work just isn’t as reliable as it once was.

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