On February 20, DoD notified Congress of a potential furlough of civilian employees in the event of sequestration. Sequestration (the Budget Control Act of 2011) began March 1 and requires extraordinary across-the-board budget reductions — approximately $4-5 billion. Because sequestration was triggered in March — nearly halfway through the fiscal year — the Department must absorb the additional cuts within a few months. The Department of the Navy (DON) has taken and will continue to take steps to address current and project budget reductions. Administrative furloughs are expected to be limited to no more than 88 hours (about 11 days) and may begin in July and extend through September 30.

With an administrative furlough, virtually all employees are subject to furlough unless they are covered by an approved exceptions furlough - about 78% of the employees will be impacted to include senior executives and employees in working capital fund organizations. In a furlough situation, employees are placed in a temporary nonduty, nonpay status because of lack of work or funds or other nondisciplinary reasons. Unlike past emergency or shutdown furloughs, an administrative furlough is a planned event designed to absorb reductions necessitated by downsizing, reduced funding, lack of work or any other budget situation other than a lapse in appropriations. Furloughs that would result from sequestration would generally be considered administrative furloughs. All approved exceptions have been documented and provided to BSO Commanders.

Generally, DoD and DON have excepted the following from the administrative furlough:

1. Civilians deployed in combat zone
2. Civilians responsible for safety of life or property – only to extent needed to prevent unacceptable risk or catastrophic gaps (mostly police, firefighters)
3. Civilians funded 100% with non-appropriated funds
4. Employees exempt by law (Presidential appointees not eligible for leave)
5. Civilian mariners at sea
6. Civilians providing 24-hour inpatient and emergency care
7. Child care workers required to meet regulatory requirements
8. Foreign nationals
9. Intel positions actively engaged in the collection and analysis of intelligence data
10. Shipyard workers
11. Nuclear reactor response teams
12. Foreign Military Sales (FMS) employees fully funded (100%) by FMS trust funds

Additional Administrative Furlough Information

• Message from Secretary of the Navy Ray Mabus
• Planning Guidance for Potential Civilian Furloughs
• Furlough Announcement and Sequestration CR Fact Sheets
• Memo to DoD Civilians
• Letters to Congress
• DON HR FAQs - Administrative Furlough  Updated
• DON Furlough Fact Sheet
• OPM Administrative Furlough FAQs  
• OPM Supplemental Administrative Furlough Guidance
• TSP Fact Sheet-Nonpay Status - (022013)
• TSP Fact Sheet-Sequestration - (032013)
• DoD Employee Benefits Handout  New
• CNO Memo - Message from CNO
• CMC Memo - Message from CMC to Civilian Marines
• Agency Responsibilities for Implementation of Potential Joint Committee Sequestration
• OSD Budget Guidance Memo
• Supporting Material  Updated

In an uncertain fiscal climate, the Department of Defense (DoD) and the Department of the Navy (DON) may have to turn to cost-reduction methods with the workforce to absorb budget reductions. The type of fiscal scenario ultimately drives the required cost-reduction measure impacting the workforce.

On January 28, 2013, the DON executed an across-the-board hiring freeze for all Navy Major Commands and the Secretary. Assistant Secretary of the Navy (Manpower and Reserve Affairs) Juan Garcia. issued the guidance which superseded earlier guidance issued 15 January 2013 and remains effective until further notice. The United States Marine Corps (USMC) is not included in the hiring freeze as they recently ended a year-long hiring freeze in 2012.

Exceptions to the across-the-board hiring freeze are limited to:

• Hiring actions with a confirmed EOD set on or before 14 January 2013
• Hiring actions where a formal job offer has been made in writing on or before 14 January 2013
• Hiring actions pending resolution/clearance of Department of Defense Priority Placement Program (PPP) Hiring actions pending resolution/clearance of Department of Defense Priority Placement Program (PPP) issues - if a PPP match is made, the hiring action must be made effective
• Defense Health Program-funded positions
• Non-appropriated fund positions
• Career conversion/transition of interns to their permanent positions/Commands (applies to interns in the formal, centrally managed Acquisition, Financial and Human Resources intern Programs)
• Career conversion/transition of apprentices to their permanent positions (applies to apprentices in formal Apprenticeship Programs)
• Critical HR Service Delivery positions in the Office of Civilian Human Resources-approved Command Human Resources Office structures
• Movements internal to the BSO (subject to supplemental BSO guidance)

Additional Fiscal Information

• OMB Guidance (14 January 2013)


• ALNAV 006/13 (14 January 2013)


• Handling Budgetary Uncertainty in FY13 - DEPSECDEF Memo (10 January 2013)


• Secretary of Defense Leon E. Panetta guidance regarding ongoing fiscal cliff negotiations (20 December 2012)

A shutdown furlough is an unplanned or emergency event when there is a lapse in appropriations. A shutdown furlough is necessary when an agency no longer has the funds necessary to operate and must shut down those activities that are not excepted under the Antideficiency Act.

Federal employees may be familiar with these types of furloughs from instances in previous years in which the government has faced a potential shutdown. For additional information on shutdown furloughs see OPM’s guidance for shutdown furloughs related to potential lapse in appropriations at http://www.opm.gov/furlough/index.asp. Shutdown furloughs are considered emergency furloughs – conversely, administrative furloughs are planned events.

Employees may be “excepted” from an unplanned furlough by law because they are (1) performing or supporting the performance of emergency work involving the safety of human life or the protection of property, (2) involved in the orderly suspension of agency operations, or (3) performing other functions exempted from the furlough. An “excepted” employee may be required to work in a non-pay status during the furlough period.

Additional information and previous guidance is available via the below links.

Department of the Navy

• Fact Sheet Furlough (14 December 2011)
• Under Secretary Guidance (15 December 2011)
• Budget Guidance Memorandum (14 December 2011)
• Fact Sheet For Excepted Employees (14 December 2011)
• Frequently Asked Questions - Furlough & Lapse in Appropriations (15 December 2011)

Office of Personnel Management

• OPM Furlough FAQs
• OPM Guidance and Information on Furlough
• OPM Information on the Potential Impact of a Lapse in Appropriations on Federal Employees

Department of Defense

• DSD Memo (14 December 2011)
• Draft DoD Guidance (14 December 2011)
• DSD Shutdown Planning Guidance (15 December 2011)

Office of Management and Budget

• OMB Guidance (16 December 2011)
• OMB Contracting Frequently Asked Questions (15 December 2011)

Individuals should email DONhrfaq@navy.mil for further guidance.