The Government is Shut Down. Here's What it Means to You and What We're Doing About It.

Beth Dean 10.01.13
122 Woman Working And Tea

In the face of budgetary disagreements, many parts of the federal government shut down on October 1, 2013.

The implications reach beyond the 800,000 temporarily furloughed federal employees and impact private businesses and employees. Below is a list of ways your company may be affected, as well as areas where you can turn to Nextep for additional assistance during this time.

Department of Labor
The Department of Labor (DOL) and its affiliated divisions will cease or reduce operations during the government shutdown. Divisions include:

  • Wage and Hour Division (WHD), which governs the proper payment of employees
  • Occupational Safety and Health Administration (OSHA), which governs workplace safety
  • Equal Employment Opportunity Commission (EEOC), enforcing workplace anti-discrimination laws.
  • Companies are still expected to fully comply with DOL provisions, including overtime payments, safety training, and Title VII. Nextep’s Human Resources professionals are available to answer any questions or case-by-case situations that may arise for our clients.

Mail
The US Post Office is still operational, which means that any compliance notices or other items currently in the mail will continue to be delivered without interruption. There will likewise be no change or delay in payments to various vendors, benefits carriers, partners, or other parties to whom Nextep pays bills on behalf of our clients.

Unemployment
Multi-year funding for unemployment and Social Security benefits was approved in earlier bills; payments will therefore not be interrupted. Most unemployment proceedings are operated by state and local governments, which are still currently operational. Therefore, unemployment claims, responses, and hearings will continue as usual. Nextep’s HR Department will continue to respond to unemployment claims swiftly and thoroughly, and work closely with clients to prepare for any hearings, as well as instill best practices to safeguard the company.

Taxes
Though the Internal Revenue Service (IRS) is not available to answer questions or issue tax refunds during the government shutdown, timely tax reports and payment are still due. Nextep will continue our regular schedule of reporting and remitting all payroll and other applicable taxes on behalf of our clients.

Benefit Eligibility
Many government employees are on temporary indefinite furlough. This may potentially create a federally approved qualifying event that allows these furloughed individuals to join a spouse’s benefit plan. Please contact Nextep’s Benefits Department for further details if an employee on your company’s benefit plans is interested in adding a furloughed spouse to his or her plan, or needs to obtain coverage for him or herself due to losing coverage under a furloughed spouse’s plan.

Employee Verification
E-Verify, the online portal mandated in several states and for certain government contractors to verify an employees identity and eligibility to work in the United States, has ceased operations during the government shutdown. The U.S. Citizenship and Immigration Services (USCIS) has released interim procedures that suspend E-Verify deadlines during the shutdown.

Employers are still required to comply with existing requirements for correctly completing the I-9 form within three days of a new employee’s first day. Nextep has released a series of advisories to assist employers in correctly completing the I-9 form and avoiding common mistakes, and Nextep’s Payroll and HR professionals are available for questions as well.

For our PEO clients, Nextep also performs verification through the Social Security Business Services Online. Currently, this online service is still operational, though customer support is not available. Nextep will continue to verify social security numbers for new hires and notify clients of any mismatches and the proper next steps.

Workplace Health
The Center for Disease Control (CDC) has stopped its seasonal flu outreach and will have significantly less capacity to investigate outbreaks. As flu season approaches, employers are urged to promote awareness and health in the workplace using the CDCs existing educational materials and posters. Nextep advises employers to encourage but not require the flu shot to promote a healthy workplace.

Disaster Response
While disaster preparedness programs are suspended, disaster response is still operational under the Federal Emergency Management Agency (FEMA). Any individuals or businesses impacted by explosions, hurricanes, tornadoes, or other catastrophic events will still receive FEMA assistance. Nextep encourages company leaders to review and maintain a disaster preparedness and recovery plan to ensure business continuity in the face of a disaster.

Nextep will continue to closely monitor the situation and inform clients of any impact they may feel as a result. For additional questions, please contact Nextep.

Also on Nextep

The Answer Depends on Your State…For Now As we reported in January, non-compete agreements preventing employees from working for competitors are becoming increasingly unenforceable. The FTC is currently working on banning them at a federal level, but unless and until that decision comes, non-competes are enforced at a state (and sometimes even local) level.  As […]
Read more
When hiring workers, knowing whether they’re employees or independent contractors is essential. The difference between the two can significantly impact your business, including your tax liability, your liability for workers’ compensation claims, the worker’s rights and benefits, and your ability to control how your workers do their jobs. Read all about it here, and check […]
Read more
Employers Must Now Prove “Substantial Increased Cost” to Deny Religious Accommodation Recently, the Supreme Court ruled that employers must now demonstrate a substantially increased cost to deny an employee’s request for a religious accommodation.  This ruling, which comes in the case of Groff v. DeJoy, clarifies the standard for “undue hardship” under Title VII of […]
Read more
Here’s How the Recent Ruling Affects Your Company You may have read that in late June, the Supreme Court struck down affirmative action in college admissions. Here’s the implication this ruling could mean for you as a small or medium-sized business owner. To be clear, the Supreme Court’s decision on affirmative action does not explicitly […]
Read more
NLRA Protections: They’re Not Just for Unions In the intricate fabric of company dynamics, employee protections exist, even in non-unionized companies, as granted by the National Labor Relations Act (NLRA). These protections give employees the freedom to engage in open discussions on various workplace matters, even those conversations that may make employers a tad uneasy. […]
Read more
Have you ever felt stuck in a job that doesn’t fully utilize your skills or expertise? Or have you ever been a part of a team that just doesn’t seem to have the right skills to do the job effectively? This is a common problem in the workplace, known as the skills gap. But don’t […]
Read more
Start planning for your future superstar. What would happen to your company if you lose a key leader or employee tomorrow? It’s a tough question, but necessary. You want to ensure your company can continue, even without the lifeblood that keeps it running smoothly today. That’s where succession planning comes in. Succession planning is identifying […]
Read more
Let’s talk about something that can make a huge difference in our work lives – Emotional Intelligence (EI).  Emotional Intelligence is like a superpower that helps us navigate our own emotions and understand the emotions of others. It’s all about self-awareness and empathy, which leads to better communication, stronger relationships, and improved decision-making. It’s like […]
Read more
Maximize Your Team’s Career Potential Ongoing employee training is crucial to any successful business. It’s the foundation upon which we build our success, the cornerstone of growth and progress. But here’s the catch: we can’t just train our employees once when they’re hired and call it done. We must all be perpetual students, learning new […]
Read more
How can you prioritize ethics in the workplace? Leaders play a critical role in shaping the ethics and values of a workplace. Here are 5 surefire ways that you, as a leader, can be modeling ethics from the top down: Lead by example: You set the tone for the rest of the organization, so it’s […]
Read more
Help support your employees in a tough economy Let’s talk about supporting employees in a tough economy. It’s a challenging time for everyone, but it’s imperative that employees feel valued and supported during tough times. Here are some ways companies can care for employees in a tough economy: Offer flexible work arrangements: Offer flexible work […]
Read more
Thriving in Turbulent Times Growing your business during an economic downturn can be challenging, but it’s not impossible. With the right approach and creativity, you can position your business for success, even in tough economic times. Here are some tips to help you grow your company, even when the economy isn’t looking so hot: 1. […]
Read more

Download Our App