As Congress approaches a funding lapse resulting in a government shutdown, California employers should prepare for several indirect effects on workplace operations. Although a federal shutdown does not halt California’s employment laws, it does pause many federal agency functions, as discussed below.

Federal Enforcement Agencies

Most federal labor agencies will furlough staff and suspend routine

Many Washington employers are looking for ways to retain skilled labor until businesses reopen.  The Washington Employment Security Department’s (“ESD”) emergency rules may help during the COVID-19 crisis.  Employers who plan to rehire employees when businesses reopen may request “standby” status for laid off employees, which has been expanded under the emergency rules.

Standby status