H.R. 5708: Federal Employees Civil Relief Act

The proposed Federal Employees Civil Relief Act aims to offer temporary legal protections for federal employees and contractors during specific situations, such as government shutdowns or breaches of the statutory debt limit. Here’s an overview of its key provisions:

Purpose

The Act is designed to temporarily suspend judicial and administrative proceedings that may harm the civil rights of federal workers during a government shutdown.

Definitions

Key terms outlined in the Act include:

• Federal worker: Any employee of a government agency, including contractors.
• Shutdown: A period where there is a lapse in government appropriations for over 24 hours or when the U.S. debt exceeds the statutory limit.
• Covered period: The time frame starting from the beginning of a shutdown until 30 days after it ends.

Jurisdiction

The Act applies to:

• The United States and its states.
• All territories under U.S. jurisdiction.

It allows applications to be made in any relevant court but does not apply to criminal cases or child support issues.

Anticipatory Relief

Federal workers affected by a shutdown can request a court stay or suspension for payments related to rent, mortgage, taxes, insurance, student loans, or other civil obligations during the shutdown.

Evictions

During a shutdown, landlords cannot evict federal workers from their residences without a court order. Courts can grant a stay in eviction proceedings if a federal worker's ability to pay rent is impacted by the shutdown.

Mortgage Protection

In the event of a covered action related to mortgages during a shutdown, courts can delay proceedings or adjust obligations to accommodate federal workers’ situations.

Additionally, any sale, foreclosure, or seizure of property related to a federal worker's mortgage obligations performed during a covered period is invalid without a prior court order.

Student Loans

The Act provides deferment options for student loans for federal workers during a shutdown. This includes protection from loan default, collections, or negative reporting to credit agencies without a court order.

Income Taxes

Collection of federal income taxes due during a shutdown can be deferred for up to 90 days after the shutdown ends, without accruing penalties or interest.

Insurance Protection

Federal workers will not lose health, life, disability, or motor vehicle insurance due to non-payment of premiums during a shutdown, unless a court orders otherwise.

Protection of Rights

The Act ensures that any action taken under it (like requesting deferment or suspension) won’t negatively affect federal workers' creditworthiness or insurance opportunities.

Enforcement

The Attorney General can file civil actions against individuals violating the Act, and courts may provide relief, including monetary damages, for violations affecting the rights of federal workers.

Relevant Companies

• FDX (FedEx Corporation): As a significant contractor working with federal agencies, FedEx may experience operational adjustments or financial implications during government shutdowns affecting federal contracts.
• GM (General Motors Company): GM is also a contractor for government services and may face challenges regarding contracts or payments tied to federal employees during a shutdown.