In Federated Learning a global model is learned by aggregating model updates computed at a set of independent client nodes. A key challenge in this setting is data heterogeneity across clients resulting in differing local objectives which can lead clients to overly minimize their own local objective, diverging from the global solution. We demonstrate that individual client models experience a catastrophic forgetting with respect to data from other clients and propose an efficient approach that modifies the cross-entropy objective on a per-client basis by re-weighting the softmax logits prior to computing the loss. This approach shields classes outside a client’s label set from abrupt representation change and we empirically demonstrate it can alleviate client forgetting and provide consistent improvements to standard federated learning algorithms. Our method is particularly beneficial under the most challenging federated learning settings where data heterogeneity is high and client participation in each round is low.