U.S. Federal Government Shutdown Will Affect Key Operations Like Safety Inspections

At 12:01 a.m. on Oct. 1, the U.S. federal government after the Senate failed to reach a deal on a House of Representatives-approved short-term spending bill. More than 800,000 federal employees have been furloughed or required to work without pay until a deal is reached. That 800,000 number includes 81 percent of employees at the U.S. Department of Commerce, 76 percent of employees at the U.S. Department of Labor, 59 percent of employees at the U.S. Department of Energy, and 23 percent of employees at the U.S. Small Business Administration.

A prolonged shutdown will likely reduce economic growth, but, in the near-term there are other repercussions that could affect industrial metals companies, including:

• The Occupational Safety and Health Administration has paused routine workplace safety visits is now focusing only on emergencies involving imminent danger at worksites and workplace fatalities;
• Federal data agencies have suspended issuing some economic reports, including data about manufacturing orders, construction spending, unemployment claims, and jobs and unemployment;
• The Office of Federal Contract Compliance Programs has suspended all operations;
• The National Labor Relations Board has postponed hearings before administrative law judges, along with representation elections and hearings;
• The U.S. Citizenship and Immigration Services’ E-Verify is now offline for employers;
• The Internal Revenue Service cannot verify Social Security numbers or issue tax refunds; and
• Equal Employment Opportunity Commission litigation is paused unless courts require a case to proceed.

When it comes to government contracts, routine, ongoing operational and administrative activities related to contract or grant administration has ceased. New contracts cannot be signed unless a contract meets certain criteria. Read more about those criteria at this link.