There are two broad categories of employees during a federal funding hiatus – exempt and non-exempt. The latter category can be further categorized by non-exempt employees in an excepted status.
Exempt: Employees funded by appropriations that have neither lapsed nor been exhausted, such as unobligated carryover balances and permanent appropriations. Examples of exempt employees include: Coast Guard Yard and those funded by the Boat Safety, EC&R, and R&D appropriations.
Non-Exempt: Employees funded by appropriations that have lapsed or been exhausted. Non-exempt employees are subject to furlough, unless they are deemed to perform excepted functions.
Excepted: Non-exempt employees who may continue to work because their work supports an excepted activity as detailed in paragraph 3.
Excepted Functions/Activities: Functions and/or activities necessary for Safety of Human Life, Protection of Property or National Security may continue during a lapse in appropriations as described in reference (D), (E), and (H).To qualify under this exception, there must be some reasonable likelihood that the safety of human life, protection of property or National Security would be compromised in some significant degree by the delay in the performance of the function in question. The risk should be real, not hypothetical or speculative.