Federal Workers Face Potential Backpay threat as Shutdown Looms, NFL Arbitration Bid Fails, adn California Ride-Share Drivers Gain Union Rights
Washington D.C. & Sacramento,CA – October 8,2025 – A potential government shutdown looms as President Trump issued a memo suggesting federal workers may not receive back pay for time lost during a furlough,despite a 2019 agreement intended to guarantee such compensation. Simultaneously, the Second Circuit Court of Appeals delivered a blow to the NFL’s efforts to avoid a trial concerning racial discrimination allegations brought by former Miami Dolphins coach Brian Flores, and California Governor Gavin Newsom signed landmark legislation enabling Uber and Lyft drivers to unionize.
The Trump administration’s move, referencing the “GEFTA“ agreement signed following the 35-day shutdown in 2019, is being interpreted as a pressure tactic aimed at forcing congressional Democrats to negotiate an end to the current impasse. Axios reports the memo threatens to withhold back pay-a benefit many federal employees relied upon after the previous shutdown-possibly impacting thousands of workers and their families. This action raises questions about the enforceability of the GEFTA agreement and the administration’s commitment to supporting federal employees during periods of government closure.
In a separate legal development, the Second Circuit rejected the NFL’s request for an en banc review of a decision preventing the league from forcing former coach Brian Flores’s discrimination lawsuit into arbitration. Flores originally filed a class action suit in 2022 alleging racial bias in the NFL’s hiring practices, naming the NFL, Giants, Broncos, and Texans as defendants.The court found that allowing arbitration would place the decision-making power in the hands of the NFL Commissioner, a conflict of interest that “offends basic presumptions of our arbitration jurisprudence.” The ruling allows Flores’s claims to proceed to trial.
in California, Governor Newsom signed AB 1340 and SB 371, creating a framework for Uber and Lyft drivers to collectively bargain for improved pay and benefits while maintaining their classification as self-reliant contractors. AB 1340 outlines the terms of this collective bargaining, while SB 371 reduces insurance coverage requirements for the ride-sharing companies. The new laws aim to balance driver protections with the companies’ business models, potentially setting a precedent for similar legislation in other states.
