A partial government shutdowns are set to commence on October 1. Federal workers are staring at furloughs and the loss of pay; therefore, many are faced with the question of whether unemployment benefits are available when their paycheck stops. This is what you need to know.
What is a shutdown furlough?
Shutdown furloughs occur when a funding lapse prevents a federal agency from keeping all positions active. Non-essential employees are then placed in a “non-duty, non-pay status,” whereby they are on the federal payroll but unable to work or be paid until funding has been restored. Essential or ‘excepted’ employees, such as military personnel, law enforcement agents, emergency responders, and other critical functions are paid regularly and kept on during this brief period of inactivity.
Eligibility for unemployment compensation for federal employees
Some furloughed workers could qualify for Unemployment Compensation for Federal Employees (UCFE). Individual states administer this program subject to the same guidelines applied to unemployment benefits for non-federal employees. Eligibility criteria chiefly require proof of federal employment and earnings, generally provided by the SF-50 (Notification of Personnel Action) or earnings and leave statements; completion of SF-8 (Information on Federal Employment) to state the nature of the furlough; and sufficient earnings within the state’s designated minimum for a “base period” prior to the furlough.
The claim for UCFE will not affect his/her status as an employed federal worker who will be entitled to back pay after the government shut down. Unemployment Compensation for Federal Employees (UCFE) has no effect on the status of the federal employee whatsoever, who remains employed and entitled to back pay once government operations resume.
How to file a claim
1. Learn how to contact your state unemployment office or find an online claim zone by checking the Department of Labor’s service locator at servicelocator.org.
2. Get together the necessary documentation: your most recent SF-50, SF-8, and any earnings statements.
3. Make your claim online or in person according to state application instructions.
Typically, states have a waiting week and also require that you are able to work and available for work. The first benefits will usually become payable about two or three weeks after filing.
Benefit amounts and duration
Unemployment benefit amount and duration vary from state to state.
- Maximum duration: Usually for up to 26 weeks of regular benefits.
- Weekly amount: Amount determined by state law, usually a percentage of your average earnings during the base period.
Some states may approve extended benefits if unemployment levels remain high, but such programs depend on congressional approval along with the state’s level of unemployment.
Are “excepted” employees eligible?
Generally, employees “excepted or essential”-those whose work is considered vital to national security and public safety-are not furloughed and remain working during a shutdown. Since they do work and are paid, they normally would not be eligible for unemployment. However, if some excepted positions are adversely affected by the lapse of funding and cause a change in duty status, then employees in those affected positions may become eligible for UCFE.
Retroactive pay and return to work
Once appropriations have been made by Congress and the shutdown ends, all furloughed employees will be returned to active duty. By law, federal employees are compensated retroactively for all back pay during the furlough period. Any employee who receives UCFE benefits must report any amount of back pay received to their state unemployment agency. Typically, the amount of UCFE benefits paid for the weeks that back pay was received will be deducted from that amount of back pay dollar-for-dollar.
Alternatives to unemployment benefits
Although UCFE can be a good safety net, some furloughed federal workers might want to consider pursuing some alternatives:
- The emergency loans should have low interest available to certain federal credit unions to help cover living costs during a shutdown.
- The personal leave includes annual leave or sick leave that may be requested to cover the time between funding cessation and restoration; however, that leave will be deducted from an employee’s accrued leave balances.
Temporary worksites permit federal workers on furlough to take jobs, not just breaking their federal status but also allowing them to prepare to return to work once funding resumes.
Preparing for shutdowns
To lessen the burden in case of shutdowns, preparations must be made by federal employees ahead of the impending shutdown:
- An emergency fund should cover a minimum of one month’s expenses.
- The availability of the SF-50 and SF-8 forms should be established.
- A familiarity with the unemployment process in the employee’s state should be determined.
Knowing the rules governing UCFE, gathering the documentation necessary to file a claim, and planning during a shutdown will allow furloughed federal workers to achieve semiannual income until government work resumes.
