A federal employee who is furloughed or laid off may be eligible for unemployment compensation. Image: AliaksaB/Shutterstock.com
By: FEDweek StaffFollowing are the key sections of a Congressional Research Service report giving an overview of unemployment compensation benefits for federal employees.
The Social Security Act of 1935 (P.L. 74-271) authorizes the joint federal-state UC program to provide unemployment benefits. The UC program provides income support through weekly UC benefit payments. Federal laws and regulations provide broad guidelines on UC benefit coverage, eligibility, and benefit determination, but the specifics are determined by the 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Most states provide up to a maximum of 26 weeks of UC benefits. The U.S. Department of Labor (DOL) provides oversight of state UC programs and state administration of all UI benefits. DOL provides contact information for each state UC agency.
The UC program generally provides benefits to both eligible individuals who are on temporary layoff (furlough) as well as those who experience a permanent job loss. Among other requirements, to receive UC benefits claimants must be able, available, and actively searching for work. UC claimants generally may not refuse suitable work, as defined under state laws, in order to maintain their UC eligibility.
UC for Former Federal Employees
A federal employee who is furloughed or laid off may be eligible for UCFE (U.S.C. §§8501-8509). States are required to operate the UCFE program under the same terms and conditions that apply to regular state UC. UCFE eligibility, like regular UC eligibility, is determined under the laws of the state in which an individual’s official workplace is located. Thus, two former federal employees with the same earnings and work history may qualify for different amounts of benefits if they file for UCFE based on employment in different states. Employees in a probationary period who are separated from federal service may be eligible for UCFE and/or UC if their earnings history meets the state’s minimum earnings requirements and other state eligibility requirements.
Individuals who served on active duty in the U.S. Armed Forces or the Commissioned Corps of the National Oceanic and Atmospheric Administration (NOAA) may be eligible for unemployment benefits through the UCX program (5 U.S.C. §§8521-8525) after they voluntarily separate from service.
Extended Benefits
The Federal-State Extended Unemployment Compensation Act of 1970 (P.L. 91-373) established the EB program to provide additional weeks of unemployment benefits if high unemployment exists within a state. After entitlement to UC, UCFE, or UCX is exhausted, unemployed workers— including former federal employees and former military servicemembers—may qualify for additional weeks of EB. The EB program, also administered by states, may provide up to an additional 13 or 20 weeks of benefits, depending on worker eligibility, state law, and economic conditions.
Combined Claims
A former federal employee or former military servicemember may receive a combined UI benefit (e.g., a combination of UC and UCFE or UC and UCX) if the unemployment benefit is based on a period that included federal or military service as well as other employment. This situation is generally referred to as a combined claim. In general, based upon each state’s law, only the amount of the benefit that is attributable to federal or military service would be charged to the agency for the purposes of financing UCFE or UCX.
Availability of UI Benefits During a Government Shutdown
UC, UCFE, and UCX are classified as mandatory entitlements and are not funded through annual appropriations. Thus, all UI benefits, including UCFE and UCX, must be paid to eligible individuals. During a government shutdown due to a lapse in appropriations, an affected federal agency may except certain workers from furlough based on the Office of Management and Budget’s guidance. These excepted workers are required to report for work and perform duties, but their pay is delayed until appropriations are enacted. According to guidance issued by DOL on November 22, 2021, excepted federal employees who are performing services (but whose payment for that work is delayed) would generally be ineligible for UCFE benefits based on states’ definitions of unemployment.
However, retroactive pay for furloughed federal employees and federal employees excepted from furlough was permanently authorized under P.L. 116-1, the Government Employee Fair Treatment Act of 2019 (enacted January 16, 2019). Therefore, under current law, UCFE payments made to a former federal employee during a shutdown may be (1) deemed an overpayment once that federal employee is retroactively paid and (2) subject to state laws regarding UC overpayment recovery.
Active-duty military personnel are considered to be working even if their pay is unavailable, and thus are ineligible for UCX or regular state UC benefits during a government shutdown.
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See also,
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