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Yahoo
15 hours ago
- Business
- Yahoo
5 Top Ways Your Paycheck Will Change If the Supreme Court Allows Mass Layoffs
In recent news, it was announced that the Trump Administration's mass layoff plan — also called a 'reduction in force' plan — has once again moved to the Supreme Court for final approval. If it passes, 22 government departments could be affected as thousands of federal employees would be let go from their jobs. Read Next: Find Out: If the Supreme Court allows this mass layoff, it could have a ripple effect across both federal and non-federal employees. Here's how experts think it might impact workers in the U.S. — and potentially your paycheck. Recent changes have already impacted employees across the board. For federal workers, there's a significant increase of those being forced to leave the workforce without severance pay. 'While, initially, many of the federal workers cut from the workforce accepted a voluntary incentive to leave the ranks earlier than they might otherwise have left, there are thousands more who were simply severed without compensation,' said Eric Steffy, Founder and CEO at Federal Solutions Support. Steffy added that many of those who were severed without pay were employees who were still on probation and contract workers. That said, many of those severed are still eligible for state unemployment benefits as they seek new opportunities in the private sector. Mass layoffs in the federal government could have implications regarding job stability and workplace confidence. 'Even for non-federal workers, substantial cuts in the federal workforce can create impacts on job stability, local economic systems, and public confidence,' said Eric Kingsley, Partner at Kingsley Szamet Employment Lawyers. 'It is possible that we can witness shrinking consumer spending, increased competition for available jobs, and a general sense of insecurity pervading the job market.' Increased competition could also lead to more skilled workers vying for jobs with a lower starting salary. This is especially plausible as more federal workers seek private sector opportunities. The average federal worker earns $106,382 annually. However, federal workers often get paid less than their private sector counterparts. As per The Federal News Network, there's a 24.72% wage gap between federal and private sector workers who have jobs where they perform similar duties. Given this, federal employees who get laid off and need to make the switch could see a pay increase. Just because many people would be laid off doesn't mean everybody would be. After all, someone still needs to perform the tasks at hand. But even here, there could be the downside of heavier workloads and more responsibilities for those who remain. Some experts believe this could also lead to longer hours, potentially without overtime pay — that's more work. 'Salaried employees, who are not eligible for overtime pay, may be expected to work longer hours without additional compensation,' said George Carrillo, former Director of Social Determinants of Health for Oregon and current Co-founder & Chief Executive Officer at Hispanic Construction Council. 'Hourly workers typically won't see a pay increase either, since government compensation is fixed within existing budget agreements and union contracts.' Another potential impact is that on small businesses — both the owners and the employees. As Steffy pointed out, many small businesses work in part based on federal grants and contracts. This has led to some businesses shutting down permanently, while others have laid off some of their employees as a result of canceled contracts. 'This has been painful not only for those business owners who must now weigh whether their work can go forward, but for severed employees now without a paycheck and those downstream who benefited from their services,' Steffy said. Mass layoffs on any level are stressful, but they're not the end of the world. 'One thing is certain, the marketplace will continue to evolve. Federal and non-federal jobs will come and go but the skillset, mindset, and lifetime experience that you bring to the table are needed in multiple venues,' said Steffy. If you're stressing about your livelihood, take a moment to calm down. It might help to talk to someone you trust and to make a plan — just in case. More From GOBankingRates 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on 5 Top Ways Your Paycheck Will Change If the Supreme Court Allows Mass Layoffs
Yahoo
2 days ago
- Business
- Yahoo
The First Thing Retirees Should Do With Funds From the Social Security Fairness Act
The Social Security Fairness Act, passed at the end of President Joe Biden's term in 2024, removed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) and made it possible for many public servants to earn Social Security income on top of their other retirement plans. As a result, many retirees are now receiving, or will soon receive, an influx of Social Security funds. Additional income for retirees is typically very welcome, but it can also lead to a temptation to overspend. Here, three different financial experts suggest the first thing you should do with your additional income. Check Out: Read Next: The first thing you should do with any influx of funds you receive from the Social Security Fairness Act is create or contribute to an emergency fund, according to Eric Steffy, founder and CEO of Federal Solutions Support. 'Life happens and having an emergency fund for a time when you'll face unexpected costs can keep you from racking up high-interest charges on a credit card, taking high-interest loans or dipping into accounts budgeted for daily expenses,' he said. Ideally, your emergency fund should have at least $10,000 in it, though some people are able to ensure they have an even larger cushion. 'Having an emergency fund is a critical step for ensuring financial stability and providing a safety net during unexpected events,' Steffy said. For seniors, the No. 1 big-ticket expense is, perhaps surprisingly, unexpected dental bills, because most costly dental procedures aren't covered by Medicare. The second-largest unexpected financial event is changes in housing costs or property assessments. Watch Out: Jason LaBarge, president at LaBarge Financial, suggested your first move be to review your high-interest debt and make a plan to pay it off as soon as possible. 'Credit card interest rates are usually over 20%, and that can cripple your finances over time. Use this opportunity to get yourself out of debt and back on track to achieving your retirement goals,' LaBarge said. Debt payoff was another suggestion by Steffy. 'Receiving an unbudgeted windfall may tempt you to make a few things on your wish list come true: that dream trip, new car or home improvement project. It's fun to go for that wish list but it may be even more satisfying to erase stress by reducing debt,' he said. He pointed out that for most retirees, carrying a mortgage, car loan or credit card debt while also paying for food, healthcare and often contributing to the support of others 'can create a sense of vulnerability.' Paying off debt first means you can indulge in leisure activities or make your life more comfortable after. If you receive extra Social Security payments, the first thing you should do is put that money into something that will benefit you for the rest of your life, according to Melanie Musson, a finance expert with 'What that looks like will depend on the individual and their investment portfolio,' she said. LaBarge added, 'This would give your money the chance to grow with the market and be available for when you're ready to do something fun.' If you have properly saved for retirement, you will more comfortable treating yourself with the extra cash. A final tip from Musson is that you should 'keep your monthly budget exactly the same as it was before.' Then, you can take your extra income and save it, invest it and build extra financial security or a legacy to leave to your heirs. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 5 Cities You Need To Consider If You're Retiring in 2025 Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on The First Thing Retirees Should Do With Funds From the Social Security Fairness Act
Yahoo
3 days ago
- Business
- Yahoo
The First Thing Retirees Should Do With Funds From the Social Security Fairness Act
The Social Security Fairness Act, passed at the end of President Joe Biden's term in 2024, removed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) and made it possible for many public servants to earn Social Security income on top of their other retirement plans. As a result, many retirees are now receiving, or will soon receive, an influx of Social Security funds. Additional income for retirees is typically very welcome, but it can also lead to a temptation to overspend. Here, three different financial experts suggest the first thing you should do with your additional income. Check Out: Read Next: The first thing you should do with any influx of funds you receive from the Social Security Fairness Act is create or contribute to an emergency fund, according to Eric Steffy, founder and CEO of Federal Solutions Support. 'Life happens and having an emergency fund for a time when you'll face unexpected costs can keep you from racking up high-interest charges on a credit card, taking high-interest loans or dipping into accounts budgeted for daily expenses,' he said. Ideally, your emergency fund should have at least $10,000 in it, though some people are able to ensure they have an even larger cushion. 'Having an emergency fund is a critical step for ensuring financial stability and providing a safety net during unexpected events,' Steffy said. For seniors, the No. 1 big-ticket expense is, perhaps surprisingly, unexpected dental bills, because most costly dental procedures aren't covered by Medicare. The second-largest unexpected financial event is changes in housing costs or property assessments. Watch Out: Jason LaBarge, president at LaBarge Financial, suggested your first move be to review your high-interest debt and make a plan to pay it off as soon as possible. 'Credit card interest rates are usually over 20%, and that can cripple your finances over time. Use this opportunity to get yourself out of debt and back on track to achieving your retirement goals,' LaBarge said. Debt payoff was another suggestion by Steffy. 'Receiving an unbudgeted windfall may tempt you to make a few things on your wish list come true: that dream trip, new car or home improvement project. It's fun to go for that wish list but it may be even more satisfying to erase stress by reducing debt,' he said. He pointed out that for most retirees, carrying a mortgage, car loan or credit card debt while also paying for food, healthcare and often contributing to the support of others 'can create a sense of vulnerability.' Paying off debt first means you can indulge in leisure activities or make your life more comfortable after. If you receive extra Social Security payments, the first thing you should do is put that money into something that will benefit you for the rest of your life, according to Melanie Musson, a finance expert with 'What that looks like will depend on the individual and their investment portfolio,' she said. LaBarge added, 'This would give your money the chance to grow with the market and be available for when you're ready to do something fun.' If you have properly saved for retirement, you will more comfortable treating yourself with the extra cash. A final tip from Musson is that you should 'keep your monthly budget exactly the same as it was before.' Then, you can take your extra income and save it, invest it and build extra financial security or a legacy to leave to your heirs. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 The 10 Most Reliable SUVs of 2025 Clever Ways To Save Money That Actually Work in 2025 This article originally appeared on The First Thing Retirees Should Do With Funds From the Social Security Fairness Act
