outsolve insights

This article is part of an ongoing legal series designed to provide insight and practical guidance on current and emerging workplace compliance issues. These insights shared by lawyers are based on their interpretation of existing regulations and proposed changes, and intended for informational purposes, not to be regarded as legal advice.

When Washington shuts down, government employees and contractors face multiple systemic issues and consequences. Federal offices sit empty, contracts get snared in limbo, and government contractors face half-finished projects and uncertainty about employee payrolls. Not surprisingly, shutdowns also stir up numerous questions: How long will furloughs last? Who pays for out-of-work employees? And most immediately, exactly who is affected by a government shutdown and how? 

If recent federal changes have you questioning pay equity’s importance, consider this: states are stepping up enforcement, and your employees are watching. In 2025, staying proactive is key. 

Not only that, but under the federal Equal Pay Act of 1963 and Title VII of the Civil Rights Act,employers are prohibited from pay discrimination on the basis of sex, gender, race, or ethnicity. These two laws work together and require that any pay differences are justified by legitimate, non-discriminatory factors such as merit, seniority, quantity or quality of work, or a factor other than sex and race.