Labor & Employment Law Daily Wrap Up, EXPERT INSIGHTS—How the government shutdown affects your business and legal cases, (Oct 8, 2025)
Law Firms Mentioned:Foley & Lardner
Organizations Mentioned:Foley & Lardner, LLP
By Christopher Swift of Foley & Lardner
Key Takeaways:
Broader disruptions possible: Outcomes are challenging to predict. Furloughs could lead to permanent layoffs, and some law enforcement functions may be reprioritized.
Essential agencies remain open: Defense, intelligence, and law enforcement agencies will continue to operate, with essential employees working even if unpaid.
Case and employee impact: Cases may face delays, and non-essential employees will be furloughed, potentially pausing some activities.
Will all federal agencies shut down?
No. Agencies related to defense, intelligence, and law enforcement will remain open. Additionally, "excepted" federal employees, those whose work protects human life or government property, will continue working, even if they aren't paid during the shutdown.
What does this mean for cases before those agencies?
Practically speaking, cases will continue, but you may experience delays due to limited resources. Deadlines still matter, so you should keep working on their cases and not assume that proceedings are paused.
What happens to employees at other agencies?
"Non-exempt" employees, typically those in regulatory or administrative roles, will be furloughed. This means that cases before these agencies may be delayed or paused until the shutdown ends.
Could the shutdown lead to permanent layoffs?
There's a possibility that the administration may use the furlough process to initiate broader layoffs. If that happens, disruptions could extend well beyond the shutdown itself.
Are law enforcement agencies affected at all?
While they generally remain operational, some disruptions may occur due to resource reallocation. The administration is prioritizing enforcement areas like immigration, drug trafficking, and tariff collection, which may impact other law enforcement activities.
Is there a way to know which agencies will be affected?
Unfortunately, the Office of Management and Budget (OMB) is not currently posting updated contingency plans. Agencies may run out of funding at different times, making it difficult to predict closures or reductions in force.
What should you do now?
Work closely with Foley's attorney teams to assess how the shutdown might impact your specific case. Whether it's a filing, proceeding, or regulatory issue, our team can help you navigate the uncertainty and stay on track.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Christopher Swift
Foley & Lardner
321 North Clark Street, Suite 3000
Chicago
United States
Tel.: +1 312 832 4500
E-mail: info@foley.com
URL: www.foley.com/
(c) Mondaq Ltd, 2025 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com
Attorneys: (Foley & Lardner).
ExpertInsights: ExpertInsights PublicEmployees GovernmentContracts AgencyNews WhiteHouseNews IndustryNewsTrends PracticeTip