00:00White House Memo – Furloughed Fed Employees Not Guaranteed Back Pay
00:04A White House draft memo suggests furloughed federal employees may not receive back pay amid the government shutdown, according to three sources cited by Axios.
00:15Withholding pay could pressure Senate Democrats to end the shutdown.
00:18A senior administration official added, this would not have happened if Democrats voted for the clean CR.
00:24The new memo contradicts the Government Employee Fair Treatment Act of 2019, signed by President Donald Trump during the 35-day shutdown.
00:34GEFTA has been interpreted to guarantee automatic compensation for furloughed workers in future shutdowns.
00:41The White House's OMB claims GEFTA has been misinterpreted since its January 25, 2019 amendment.
00:48A senior official said, conventional wisdom is yes, automatic back pay. Our view is no.
00:55Contradicting recent guidance from the Council of Economic Advisers and the Office of Personnel Management that furloughed workers should receive automatic back pay.
01:04OMB is in charge, the official added.
01:07The amended GEFTA added, furloughed workers shall be compensated subject to the enactment of Appropriations Acts ending the lapse or shutdown.
01:17If it was self-executing in future shutdowns, why did Congress do that?
01:23It's precedent, the White House official said. Adding any other interpretation is ridiculous.
01:29Labor attorney Nikesha Campbell said, there is no legal authority to support that interpretation of the statute.
01:35The law here is quite clear.
01:38Sam Berger added, senior fellow at the Center for Policy and Budget Priorities said,
01:42The caveat is, if you follow the law.
01:46A senior administration official noted, this is not being done simply as a pain point for Democrats.
01:52After the shutdown began, OMB Director Russell Vought announced the administration is withholding up to $28 billion in infrastructure and energy projects in mostly Democratic areas, including New York City, Axios reported.
02:06An advisor added, Trump will take his chances in court.
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