S. 2982 — Federal Employees Civil Relief Act

This section states the purpose of the Act to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of federal workers during a shutdown.

This section defines key terms for purposes of the Act, including (1) consumer reporting agency, as defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)); (2) contractor, as defined in 41 U.S.C. 7101; (3) court, judgment, and State, as defined in section 101 of the Servicemembers Civil Relief Act (50 U.S.C. 3911); (4) covered period, as the period beginning on the date a shutdown begins and ending 30 days after the shutdown ends; (5) Federal worker, as an employee of a Government agency, including a contractor employee; (6) Government agency, as each authority of the executive, legislative, or judicial branch of the U.S. government; and (7) shutdown, as any period with a lapse in appropriations for more than 24 hours due to failure to enact a regular appropriations bill or continuing resolution, or when U.S. debt exceeds the statutory limit under 31 U.S.C. 3101.

This section establishes the jurisdiction of the Act over the United States, states and their political subdivisions, and U.S. territories; applies the Act to judicial and administrative proceedings in those jurisdictions (excluding criminal proceedings and child support payments); permits applications under the Act to be filed in any court otherwise having jurisdiction over the matter when no prior proceeding exists; and requires agency heads (or appointing authorities for legislative and judicial branch employees and contractors) to provide federal workers written notice of Act benefits upon hiring, periodically thereafter, and at the start of any government shutdown.

This section authorizes a federal worker who is furloughed or required to work without pay during a government shutdown to apply to a court for a temporary stay, postponement, or suspension of any payment of rent, mortgage, tax, fine, penalty, insurance premium, student loan repayment, or other civil obligation or liability owed or due during the shutdown.

This section prohibits landlords from evicting federal workers from residences or subjecting such premises to distress during a government shutdown without a court order. It requires courts, upon request by affected federal workers, to stay eviction proceedings for 30 days or adjust lease obligations and authorizes courts to grant equitable relief to landlords. It establishes knowing violations as a misdemeanor punishable by fine under 18 U.S.C., imprisonment for not more than one year, or both.

This section establishes mortgage protections for federal workers during government shutdowns (covered periods). It defines a covered action as a proceeding on a mortgage, trust deed, or similar obligation on the worker's real or personal property that originated and was in effect before the shutdown began. For covered actions filed during a covered period, courts may stay proceedings or adjust obligations as justice requires, and must do so upon the worker's application if their compliance ability is materially affected by the shutdown. Sales, foreclosures, or seizures for breach of such obligations are invalid during a covered period without prior court order and approval. Knowingly violating or attempting to violate this prohibition is a misdemeanor punishable by fine under 18 U.S.C. or imprisonment for up to one year, or both.

This section prohibits, during a covered period, the foreclosure or enforcement of a lien on the property or effects of a federal worker—defined to include liens for storage, repair, or cleaning of such property; other liens on that property; and loans secured by a motor vehicle—absent a court order issued beforehand. It further authorizes a court, upon its own motion or at the request of an affected federal worker whose ability to pay is materially impaired by a shutdown, to stay such a proceeding or adjust the underlying obligation as justice requires; and it establishes as a misdemeanor, punishable by fine, imprisonment for up to one year, or both, any knowing violation or attempted violation.

This section establishes protections for federal workers' student loan payments—defined to include loans under title IV of the Higher Education Act of 1965 and private education loans (as defined in 15 U.S.C. 1650(a))—during a government shutdown when the worker is furloughed or required to work without pay and a payment falls due or remains unpaid. Specifically, it (1) provides deferment eligibility during the shutdown, under which no principal is due and no interest accrues; (2) prohibits lenders from placing such loans in default without a court order; (3) for loans in default prior to the shutdown, prohibits lenders (without a court order) from sending the loan to collections, reporting adverse information to consumer reporting agencies, or garnishing wages, tax refunds, or government benefits; and (4) authorizes courts in collection proceedings to stay proceedings or adjust obligations if the worker's ability to pay is materially affected by the shutdown. This section further makes knowing violations a misdemeanor punishable by fine, imprisonment for up to one year, or both.

This section allows a federal worker whose ability to pay is materially affected by a government shutdown to defer collection of federal income tax due during the shutdown for up to 90 days after the shutdown ends, upon notice to the IRS. No interest or penalty accrues during the deferral period, the statute of limitations on tax collection is suspended for that period, and the provision excludes taxes imposed on employees under IRC §3101 (i.e., the employee's share of Social Security and Medicare taxes).

This section defines a covered insurance policy as a health, life, disability, or motor vehicle insurance policy that a federal worker entered into before a government shutdown begins and that remains in effect during the shutdown. The section prohibits, absent a court order, the lapse, termination, or forfeiture of a covered insurance policy due to non-payment of premiums (or related interest or indebtedness) due during the shutdown.

This section prohibits lenders, creditors, insurers, and credit reporting agencies from taking adverse actions against a federal worker solely for applying for or receiving a stay, postponement, or suspension of certain civil obligations (i.e., fines, penalties, insurance premiums, or other liabilities) during a government shutdown, including (1) determinations of inability to pay; (2) credit denials, revocations, term changes, or refusals; (3) adverse credit reports; (4) refusals to insure; and (5) changes in insurance terms. It further authorizes courts to (1) reduce or waive fines or penalties incurred by furloughed or unpaid federal workers for contract nonperformance materially affected by a shutdown; (2) stay execution of judgments or orders, or vacate or stay attachments or garnishments, when a federal worker's compliance is materially affected by a shutdown; and (3) extend these protections to dependents materially affected in complying with leases, contracts, bailments, or other obligations due to the shutdown's impact on the federal worker.

This section establishes enforcement mechanisms for violations of the Act, authorizing (1) the Attorney General to bring civil actions against persons engaging in a pattern or practice of violations or violations of significant public importance, with courts able to grant equitable or declaratory relief, monetary damages to aggrieved persons, and civil penalties of up to $55,000 for a first violation and $110,000 for any subsequent violation; (2) intervention by aggrieved persons in such actions to obtain equivalent relief, costs, and attorney fees; (3) a private right of action for aggrieved persons to obtain equitable or declaratory relief and monetary damages, plus costs and reasonable attorney fees for prevailing plaintiffs; and (4) preservation of all other available remedies under law, including consequential and punitive damages.