IRS Guidance Shift: Potential Back Pay Confusion for Furloughed Workers

IRS Guidance Shift on Back Pay

The IRS has caused confusion as it walked back previous guidance regarding back pay for furloughed workers during the ongoing government shutdown. Initially, the IRS stated that under the Government Employee Fair Treatment Act of 2019 (GEFTA), federal employees would be compensated during their furlough periods. However, a new memo suggests that compensation is not automatically guaranteed.

Details from IRS and OMB

• The IRS stated that an earlier memo inaccurately described GEFTA's implications for federal worker pay.
• OMB is expected to provide clarity on employees’ back pay status, as indicated in the recent IRS post on social media platform X.
• The conflicting guidance has created significant uncertainty among federal workers concerning their rights during a shutdown.

Understanding the Government Employee Fair Treatment Act

1. GEFTA was aimed at ensuring compensation for federal employees during lapses in appropriations.
2. The recent OMB guidance suggests that back pay might depend on future appropriations acts, not on GEFTA alone.
3. Employees were advised to anticipate potential changes in the compensation landscape based on forthcoming guidance from the OMB.

As this situation evolves, federal employees remain anxious about their financial security.