Will I Lose My Job If I'm Indicted Federally
The Constitution promises you're innocent until proven guilty. Your employer promises nothing.
Federal indictment puts you on trial in two places at once - the courtroom where presumption of innocence actualy matters, and the workplace where it vanishes completley. The same government accusing you of a crime created the employment laws that let your boss fire you for being accused. Welcome to Spodek Law Group. We've seen this devastation unfold dozens of times, and the pattern is always the same.
You can win your federal case. Get acquitted. Charges dismissed. Have a judge tell the world the government failed to prove anything. And still lose your career permanently. The gap between what people beleive about employment protection and what actualy exists is enormous - and by the time most people discover the truth, theyve already lost everything.
The Presumption That Doesn't Protect You
Heres the reality most people never understand until its to late.
At-will employment covers approximately 74% of private sector workers in the United States. What that means in practice: your employer can terminate you at any time, for any reason, as long as that reason isn't explicitly illegal discrimination. Being charged with a federal crime isnt a protected category. Being indicted isnt discrimination. Your employer watching the news and deciding they dont want the association? Completely legal.
The EEOC has guidance saying employers shouldnt fire someone based solely on an arrest record. That sounds protective. Its not. The guidance specifically allows employers to consider "the conduct underlying the arrest" when making employment decisions. Read that carefully. The conduct underlying the arrest is exactly what the indictment alleges you did. So an employer can say they're not firing you for the indictment - there firing you becuase they beleive the conduct described in the indictment actually occured. Same result, different legal justification.
California has Labor Code Section 432.7 which restricts employers from using arrests that didnt result in conviction. Sounds protective again. But pending charges - the limbo your in while the federal case plays out - fall into a gray area. The case hasnt resulted in conviction yet. But its also not an arrest that didnt result in conviction. Its somewhere in between. And most employers in that gray zone fire you anyway.
The math is brutal.
Federal cases average 18 to 24 months from indictment to resolution. Thats potentially two years where your "presumed innocent" but unemployed. Two years where every job application asks about pending charges. Two years where background checks show an open federal case. Two years where your professional reputation erodes while you wait for your day in court.
And if you think the charges getting dismissed or dropped will fix things - most employers dont rehire. There under no legal obligation to reinstate you. Theyve moved on. Filled your position. Explained your departure to clients. Your acquittal doesnt undo any of that.
When Your License Is The Target
Professional licenses create an entirely seperate layer of catastrophe.
If your a doctor, lawyer, accountant, nurse, pharmacist, or any other licensed professional - the federal indictment triggers immediate obligations to your licensing board. Most boards require you to report arrests within days, sometimes within hours. Failure to disclose becomes its own separate violation. And the board investigation that follows operates under completley different rules then the criminal case.
Here's the critical difference:
- Criminal conviction requires proof beyond a reasonable doubt - essentially 99% certainty
- Licensing board discipline requires only preponderance of evidence - just 51% certainty
A federal prosecutor might have a strong suspicion but insufficient evidence to convict. Your licensing board can revoke your license based on that same insufficient evidence - becuase there standard is so much lower.
Some boards can impose emergency suspensions without even giving you a hearing first. They make a determination that public safety is at risk, and your license is suspended while the investigation continues. No opportunity to defend yourself. No chance to explain. Just a letter telling you your not allowed to practice.
The Pennsylvania Medical Board revoked a doctors license after federal healthcare fraud conviction - 84 months in prison, $2.3 million in restitution. But here's what people miss: the license revocation wasnt automatic. It was a seperate proceeding with seperate standards. The federal conviction made the license case essentially unwinnable, but the board still had to act independently. Which means your fighting on two fronts simultaneously, with lawyers who may have completley different strategic priorities.
Your criminal defense attorney wants the best possible outcome in federal court. Your licensing attorney wants to preserve your ability to practice. Sometimes those goals align. Sometimes they directly conflict:
- A plea deal that reduces your federal exposure might contain admissions that guarantee license revocation
- An aggressive trial defense that protects your license might increase your sentencing exposure if you lose
- The timing of one proceeding can create evidence problems in the other
This is were coordination between your legal team becomes critical. We see cases were people hired excellent criminal defense lawyers and excellent licensing lawyers - but nobody was coordinating strategy. The criminal lawyer made decisions that destroyed the licensing case. Or the licensing lawyer demanded positions that weakened the criminal defense. You need representation that understands both battlefields.
The Security Clearance Cliff
If you hold a security clearance - and over 4 million Americans do - federal indictment creates an almost automatic cascade toward unemployment.
Security clearances require demonstrating you dont pose a risk to national security. Pending federal criminal charges are basically the definition of that risk. The moment the government agency sponsoring your clearance learns about the indictment, your clearance will almost certainly be suspended pending investigation.
For government employees, suspension of clearance means you cant perform your job duties. Youll be placed on administrative leave or reassigned to unclassified work if any exists. For contractors - the people who work for private companies but require government clearance - theres often no alternative:
- No clearance means no access to classified information
- No access means no ability to perform job duties
- No job performance means termination
Its not the contractor company choosing to fire you. Its that they literally cannot employ you anymore because you cant access the information required to do your job.
The clearance revocation process has its own timeline completely independent of your criminal case. You'll receive a Statement of Reasons explaining why the government believes you should lose your clearance. You can submit a written rebuttal. You might get a hearing before the Defense Office of Hearings and Appeals. But this entire process runs parallel to your federal case, creating yet another front in the war for your career.
Weve seen cases were the criminal charges were ultimately dismissed or resulted in acquittal - but the clearance was already gone. Reinstating a revoked clearance is extraordinarly difficult. Many cleared positions require applicants to already hold active clearances. The practical effect is permanent exclusion from an entire sector of the economy, even if you win your case.
What Protection Actually Exists
Union membership changes the calculus - but not as much as people think.
If your covered by a collective bargaining agreement, your employer generally needs "just cause" to terminate you. That sounds like protection. And it is, to a degree. The employer cant just fire you the day the indictment hits the news. There has to be a reason that satisfies the "just cause" standard.
But federal indictment often satisfies that standard. Especially if the alleged conduct is related to your job duties. A bank employee indicted for fraud? Just cause. A nurse indicted for drug diversion? Just cause. The connection between the charges and your employment matters enormously.
Even if the employer fires you without satisfying just cause, your remedy is the grievance process. File a grievance. Union meets with management. Maybe it escalates to arbitration. Maybe an arbitrator reinstates you with back pay. But this process takes months or years. Your living without income the whole time. And theres no guarantee you win.
Government employees have more due process then private sector workers.
Federal employees can appeal to the Merit Systems Protection Board. State and local government employees often have civil service protections. But these protections are procedural - they require the government to follow certain steps before firing you. There not guarantees of continued employment.
Administrative leave policies for federal employees were recently formalized. The Office of Personnel Management capped paid administrative leave at 10 days per year. After that, agencies must either return you to work, charge you leave, or take action. The "action" is usually proposing your termination. So even protected federal employees face a clock.
Heres what actualy helps:
- Getting ahead of the situation before the indictment becomes public. If you know federal charges are coming - becuase you received a target letter, becuase your lawyer told you indictment is imminent - there may be conversations to have with your employer before the news breaks. These conversations are delicate. Done wrong, they accelerate your termination. Done right, they can preserve options that dissapear once the indictment is public.
- Understanding which battles matter most. You may not be able to save your job, your license, and avoid conviction. Sometimes protecting one means sacrificing another. Strategic thinking about which outcome matters most to your long-term future is essential.
- Coordinating your legal defense across all forums. Your criminal lawyer, your licensing lawyer, your employment lawyer - if these people arent talking to each other, your in trouble. Decisions made in one forum have consequences in others. Todd Spodek and our team coordinate across practice areas so nothing falls through the cracks.
- Moving quickly. Every day between indictment and resolution is a day your career suffers. Pushing for expedited resolution when possible. Understanding plea options that might allow faster return to employment. Calculating the true cost of extended trial preparation against the benefits of fighting.
The Call You Need To Make
If your facing a federal indictment or think one is coming, your employment situation is part of the crisis - not a seperate issue to handle later.
At Spodek Law Group, we understand that federal criminal defense isnt just about the courtroom. Its about your whole life. Your job. Your license. Your ability to support your family during a process that can take years. We coordinate with employment lawyers and licensing lawyers to make sure nothing falls through the cracks.
The presumption of innocence is a legal principal for the courtroom. Its not protection for your career. The gap between those two realities is were people lose everything. Understanding that gap - and having lawyers who can navigate all the forums where your future is being decided - makes the difference.
Call us at 212-300-5196. The consultation is free. We'll help you understand where you actualy stand - not the hopeful version, but the real one. And we'll work with you to protect as much of your life as possible while the criminal case plays out.
Your fighting on multiple fronts. Make sure you have lawyers who understand all of them.
