The federal government has been in a shutdown since Oct. 1, 2025. Agencies are operating at reduced capacity, and many non-essential functions are on hold. For business leaders and owners, this disruption can ripple into operations, compliance, and staffing plans.
Here’s what matters most:
Key Disruptions to Watch
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Regulatory enforcement slows
• Wage & Hour investigations and compliance audits by the DOL’s WHD may be paused.
• OSHA will suspend most inspections, except in cases of imminent danger or fatalities.
• Discrimination claims can still be filed with the EEOC, but new investigations, hearings, and case activity will stall.
• The NLRB will likely delay new filings, hearings, and elections. -
Immigration and hiring challenges
• USCIS may delay final processing of employment-based applications requiring DOL labor certifications, which are currently suspended.
• E-Verify services could be unavailable—though employers still have to complete I-9 verification. -
Contractors & federal funding
• Many federal contractors may face stop-work orders or delayed contracts, which could strain cash flow and project timelines.
• Unlike federal employees, contractors usually will not receive back pay for the pause period. -
Courts & legal matters
• The judiciary says it can sustain operations through Oct. 17, but after that only essential functions may continue.
• Litigation tied to federal agencies or deadlines could be postponed or extended. -
Macro and economic risk
• According to a White House memo, a prolonged shutdown could cost the economy $15 billion per week.
• Disruptions to funding, contract awards, and agency projects may slow investments, supply chains, and grants.
What You Should Do Now
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Map your dependencies
Identify contracts, certifications, regulatory filings, or permits tied to federal agencies that might stall. -
Communicate & plan for delays
Adjust timelines or notify clients/vendors when federal deadlines or processes are involved. -
Track official updates daily
Monitor DOL, EEOC, NLRB, USCIS, and court announcements for guidance or emergency extensions. -
Lean on experts
Speak with legal, HR, and your team at Van Wyk to evaluate your exposure and possible coverage in your policies. -
Scenario-plan
Model operations under extended shutdown conditions—look at 2-week, 4-week scenarios and how you’d respond.
Navigating the Road Ahead
As this shutdown continues, staying proactive and informed will help you minimize disruption and keep your team moving forward. At Van Wyk, we’re here to help you navigate uncertainty with confidence—today and for the long run.