Case Updates

August 5, 2021

On December 1, 2020, Judge Campbell-Smith denied the Government’s motion to dismiss and its claim that it did not have an obligation to pay employees because of the Anti-Deficiency Act. Judge Campbell-Smith will not rule on whether the employees are entitled to liquidated damages until after discovery is completed. However, Judge Campbell-Smith previously ruled in connection with the 2013 shutdown that the government did not act in good faith and was liable for liquidated damages as a result of its failure to pay employees on their regularly scheduled pay day for work performed during the October 2013 partial government shutdown. We are optimistic she would reach the same conclusion here.

The Government appealed the Judge’s decision to the U.S. Court of Appeals for the Federal Circuit (“Federal Circuit”), and the Judge stayed the case proceedings pending the outcome of the appeal. The Federal Circuit has set a schedule for the parties to file their briefs in the appeal, and we will provide more information as we have it.

While the appeal is pending, we are still permitted to file new opt-in forms. The normal statute of limitations for a Fair Labor Standards Act (“FLSA”) claim is two years from the date of the incorrect paycheck. While it has been over two years since the shutdown ended, it is possible that the judge will extend the statute of limitations to three years if she determines the Government willfully violated the law, or that she will grant our motion to equitably toll the two-year statute of limitations so that the deadline to file paperwork to join the case will be extended past the two or three year period. That motion has been stayed pending the outcome of the appeal to the Federal Circuit. Thus, while we cannot guarantee that the judge will extend the deadline for additional individuals to join the case, we encourage everyone who has not yet completed sign-up forms to join the case to do so immediately.

© 2021
2018 Government Shutdown Lawsuit