Law360 published an article written by Shlomo Katz titled "How to Avoid Wage And Hour Issues During A Gov't Shutdown."
From the article:
"As the federal government fiscal year nears its end, the airwaves are once again filled with the words “government shutdown” and “sequestration.” If those events come to pass, companies that are dependent to any significant degree on federal funding, whether through contracts or grants, may need to think about furloughing some of their staff.
Furloughing hourly workers can be relatively simple, so long as any contracts and collective bargaining agreements are complied with. Under the Fair Labor Standards Act, which covers workers in general, and the Service Contract Act, which covers many government contracts workers, hourly workers don’t need to be paid when they don’t work. As for the Worker Adjustment and Retraining Notification Act, a law that requires advanced notice of certain layoffs, the U.S. Department of Labor took the position prior to a previous government shutdown that this law does not apply to layoffs caused by sequestration. It is unlikely the current DOL would take a tougher line."
To read the full article, click here.