In the face of potential federal budget cuts or a government shutdown, many Community Action Agencies (CAAs) evaluate cost-saving workforce options—from laying off staff to reducing hours or freezing wages. To help CAAs weather tough financial times and protect themselves against potential employment claims, this article provides an overview of some of the more common approaches a CAA may take to reduce staffing costs, as well as some of the key federal legal issues to consider when weighing these options.  

Related Resources:

Tips on Preparing for a Possible Government Shutdown

Tips on Preparing for a Possible Government Shutdown

With the possibility of a federal government shutdown looming, what should CAAs be doing to prepare? Review 10 tips to consider when preparing for a possible shutdown. Summaries of federal agency shutdown contingency plans also help determine which federal programs and...

Tips on Preparing for a Possible Government Shutdown

On Notice: Understanding Federal WARN Act Compliance

Whether due to funding cuts, government shutdowns, recompetition, or other operational reasons, at some point a Community Action Agency (CAA) may need to consider restructuring or downsizing its workforce. Terminating employees, shuttering locations, or implementing...

Tips on Preparing for a Possible Government Shutdown

New Trump Administration Executive Orders: Initial Thoughts

Following the 2025 presidential inauguration, the White House released a myriad of new executive orders (EOs) on a host of issues. Many of these orders contain broad directives and it will take time for the practical implications of these actions to become clear. The...