Update Applicable to:	Effective Date
All Employers and Federal Contractors	October 1, 2025

What happened?

On October 1, 2025, the U.S. federal government entered a shutdown after Congress failed to pass a funding resolution by the September 30 deadline.

Overview:

While essential services continue, many federal agencies have paused operations, creating significant delays and compliance challenges for private employers and federal contractors.

Expect operational delays, immigration bottlenecks, financial strain for contractors, and potential morale issues. Proactive planning and clear communication are essential.

Additional Information:

Equal Employment Opportunity Commission (EEOC) – Employment Discrimination

• Employees can still file discrimination charges to preserve statutes of limitation.
• No new investigations, mediations, or hearings will occur during the shutdown.
• Employers cannot obtain updates on pending or closed charges.
• Litigation continues only if courts deny continuances; otherwise, cases are delayed.
• Expected Impact: significant backlogs once operations resume.

National Labor Relations Board (NLRB) – Labor Relations

• Union elections and unfair labor practice investigations are suspended.
• Filing deadlines are tolled for the duration of the shutdown.
• Hearings will be postponed, causing weeks of delay after reopening.
• Expected Impact/Recommendation: Employers gain extra time to prepare responses but should not delay planning.

U.S. Department of Labor (DOL) – Wage and Hour Division (WHD)

• Most wage and hour audits and investigations are paused.
• No guaranteed extensions: some essential personnel may continue working.
• Litigation could slow, especially if the shutdown exceeds 2–3 weeks.
• Recommendation: Use downtime to review compliance and prepare documentation.

U.S. Citizenship and Immigration Services (USCIS) & Immigration

• USCIS remains operational (fee-funded) but at reduced capacity.
• DOL services for Labor Condition Applications (LCAs), Prevailing Wage Determinations, and PERM Labor Certifications are halted, delaying H-1B and green card processes.
• Visa issuance at U.S. Department of State consulates may slow or stop.
• E-Verify is offline; employers must still complete Form I-9 and follow alternate verification guidance.
• U.S. Immigration and Customs Enforcement (ICE) enforcement actions, including I-9 audits, continue.
• Recommendation: Plan for delays in immigration filings and maintain compliance.

Occupational Safety and Health Administration (OSHA) – Workplace Safety

• Only inspections for fatalities, catastrophes, and imminent danger will continue.
• Routine inspections and consultation services are suspended.
• Compliance deadlines for abatement and contest periods remain in effect.
• Expected Impact: Reduced enforcement does not eliminate obligations.

Federal Contractors

• Stop-work orders and payment delays are likely.
• Contractor employees do not receive back pay unless provided by their employer.
• Recommendation: Confirm if work is essential, maintain contact with contracting officers, and document all costs for potential reimbursement.

Worker Adjustment and Retraining Notification (WARN) Act

• Employers planning mass layoffs or extended furloughs must provide 60 days’ notice under federal and state laws.
• Exceptions like “unforeseeable business circumstances” may apply but require prompt notice.
• Recommendation: Review WARN and mini-WARN obligations before implementing workforce changes.

Source References

• E-Verify is Temporarily Unavailable (Until October 9, 2025)
• DOL – Contingency Plan
• NLRB – Contingency Plan
• Social Security Administration – Contingency Plan
• White House – Office of Management and Budget Press Release
• EEOC – Contingency Plan
• E-Verify Resumes Operations – Press Release (October 9, 2025)

Resources

• E-Verify – Resource Center

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.