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Judge Orders Rehire of 675 Federal Workers, Halts Further Layoffs Under Shutdown Law

The ruling enforces the shutdown-ending law barring reductions in force through Jan. 30.

Overview

  • U.S. District Judge Susan Illston issued a preliminary injunction requiring agencies to reinstate roughly 675 employees fired during or immediately after the shutdown, with back pay.
  • The order pauses additional reduction-in-force actions at the State and Education departments and reverses shutdown-era layoffs at State, Education, the Small Business Administration, and the General Services Administration.
  • Illston found the continuing resolution’s language—prohibiting agencies from initiating, carrying out, implementing, or noticing RIFs—limits agency authority during the funding period.
  • The Justice Department’s argument that pre-shutdown RIFs could still be executed was rejected, with the court citing the disruptive and “chaotic” impacts on workers, including interruptions to health coverage.
  • The judge indicated she may temporarily stay the injunction to allow the government to appeal, which could delay immediate implementation, as unions welcomed the decision.