- On October 7, 2025
As of Wednesday, October 1, the federal government has entered a shutdown that will remain in effect until further notice. This has significantly impacted the Employee Benefits Security Administration (EBSA), a division of the U.S. Department of Labor (DOL) responsible for enforcing regulations related to health and retirement benefits.
According to the DOL, roughly 504 of EBSA’s 668 employees may be furloughed due to funding lapses. While most regular operations are suspended, the agency will continue certain critical functions, such as handling urgent fraud cases, safety matters, and ongoing investigations into issues like surprise medical billing and mental health parity—areas that receive separate funding.
Essential payroll functions will continue to ensure employees are compensated, and a limited number of personnel—46 employees—will remain on duty to carry out life- and safety-related responsibilities. An additional 117 staff members will continue working on projects funded outside of standard appropriations, including enforcement of the No Surprises Act and mental health parity requirements.
The DOL’s contingency plan suggests that the anticipated December release of new broker compensation disclosure rules under the No Surprises Act will proceed as scheduled, despite the shutdown.
Implications for Employers
The shutdown of EBSA may create the following challenges for employers:
- Reduced Oversight and Delays: Most investigations, audits, and compliance efforts are on hold unless they relate to urgent safety concerns or are independently funded. This could result in slower resolution of benefits-related issues and limited access to compliance resources.
- Diminished Support Services: Employers may find it challenging to obtain compliance guidance, as advisory services such as the “Ask EBSA” hotline are likely unavailable during the shutdown.
- No Website Updates: EBSA’s online resources, including guidance and regulatory updates, will not be updated during the shutdown, potentially affecting employers’ access to timely information.
Next Steps
While it’s uncertain how long the shutdown will persist, many of EBSA’s routine functions are currently paused, and support services have been scaled back. Employers should continue normal operations while monitoring the situation for updates.