On March 21, 2013, the House of Representatives approved a spending bill that would provide funding for the federal government through September 30.  The Senate had already passed the bill and President Obama is expected to sign it.  Although the bill locks in the $85 billion in sequester cuts, it provides agencies more flexibility in implementing them.  In response to the bill, the Department of Defense has announced it is delaying furlough notices to approximately 800,000 civilian employees in order to assess its options under the bill.

Notwithstanding the additional flexibility provided by the bill, sequestration will still cause significant uncertainty for government contractors.  In implementing employment decisions, including furloughs, reduced hours programs and terminations, caused by sequestration spending cuts, contractors must engage in careful planning, including considering the federal and state employment law implications of them, including: