Can federal employees get unemployment benefits during the partial government shutdown? The short answer is likely yes if you are furloughed, but there are some important caveats. The Office of Personnel Management has released some up to date information on unemployment with respect to a shutdown.
Are federal employees eligible for unemployment benefits during a government shutdown?
In the event of a Federal government shutdown, Federal employees may be eligible for Unemployment Compensation for Federal Employees (UCFE). The UCFE program is of the Federal government. The program is conditions that apply to regular state UI.
Who is affected by the end of federal unemployment benefits?
The cessation of federal benefits will also affect gig workers, caregivers and independent contractors who traditionally aren't eligible to apply for unemployment. The move comes as many states battle a surge of COVID-19 cases and the expiration of eviction moratoria across the country.
Would the government shutdown impact SNAP benefits?
Would the government shutdown impact SNAP benefits? On 30 September, the United States federal government will run out of money and shut down should Congress not be able to pass a spending bill. The possibilities of a bill being passed are diminishing, and many agencies have already begun planning for a government closure.
How much would ending unemployment benefits have cost the economy?
The federal minimum wage has remained at $7.25, which is about $314 a week — a few dollars over what jobless Americans were collecting. Ending unemployment benefits early could have cost local state economies up to $12.3 billion, a report by the U.S. Congress Joint Economic Committee found.
What happens to federal employees if the government shuts down?
During a shutdown, furloughed employees are not allowed to work and are not paid. Legislation passed in 2019 guarantees that they will receive back pay. “Essential” employees will continue to work during a government shutdown, although they will not be paid until after the shutdown is over.
What does it mean if the government shuts down?
Government shutdowns in the United States occur when there is a failure to enact funding legislation to finance the government for its next fiscal year or a temporary funding measure.
Can you take leave during a government shutdown?
Yes. As explained in Question F. 2., an excepted employee may be excused from duty for intermittent periods during a shutdown furlough. While excused from performing excepted duties, the employee will be placed in furlough status (default approach) unless the employee elects to use paid leave under 31 U.S.C.
Will government shutdown affect retirement pay?
Will I still receive my monthly annuity payment during a government shutdown? Yes, Federal retirees under the CSRS and FERS retirement systems will still receive their scheduled annuity payments on the first business day of the month.
Did the United States government shutdown?
The United States federal government shutdown from midnight EST on December 22, 2018, until January 25, 2019 (35 days) was the longest U.S. government shutdown in history and the second and final federal government shutdown involving furloughs during the presidency of Donald Trump.
Did the IRS shutdown?
The IRS has reopened following the end of the government shutdown, and IRS employees are working hard to resume normal operations and help taxpayers as much as possible.
What is the difference between layoff and furlough?
The difference between being furloughed and being laid off is that a laid-off employee would have to be rehired to work for the company again. If you are furloughed, you may still receive employee benefits and you may be eligible for unemployment during this time.
What's furloughed employee?
To put it plainly, an employee furlough is when employers ask their workers to take unpaid leaves of absence. In other words, the furloughed employees are not going to work and not going to get paid. But technically, they're still going to stay employed.
What does furlough day mean?
A furlough is a mandatory temporary leave of absence from which the employee is expected to return to work or to be restored from a reduced work schedule.
Can you retire during a furlough?
A furloughed employee (one who is considered on unpaid temporary leave of service, with the expectation that they will eventually return to work) may continue to receive some or all of their benefits during their time away, including healthcare and retirement benefits.
Tips for federal workers who want to file for unemployment during the shutdown
Unemployment insurance laws and benefits vary by state, but here’s a general rundown of requirements from the Office of Personnel Management, an independent agency of the Federal government:
Unemployment claims spike
In the week ending December 29, over 4,700 federal workers applied for unemployment benefits, a sharp increase from the 929 who filed the week prior. Michigan, New Jersey, Pennsylvania, Connecticut and Ohio saw the largest increases in initial claims.
Can you be penalized for not paying back unemployment?
There are likely to be penalties for not paying back overpayments in unemployment. In Virginia for example, the state laws say that recipients are required to pay back overpayments, even if it happens through no fault of their own.
Can you get unemployment if you are furloughed?
The short answer is likely yes if you are furloughed, but there are some important caveats. The Office of Personnel Management has released some up to date information on unemployment with respect to a shutdown. These documents provide some frequently asked questions as to which federal employees would likely be eligible for unemployment.
Is furloughed federal employees eligible for unemployment?
OPM says it ultimately depends on a state’s laws, but that furloughed federal employees will generally be eligible “as long as all other state eligibility factors are met.”
Do you have to pay taxes on unemployment if you collect it back?
If you collected unemployment and then paid it back, the state won't send you a form 1099G, which means you don't have to claim any unemployment benefit at the end of the year on your federal and state taxes and hence you'll pay no tax. So many of todays problems can be solved by just a little bit of common sense.
Do you have to repay unemployment if you receive a retroactive payment?
This is the important item to note – OPM says that, in most states, “employees who receive unemployment benefits and also later receive a retroactive payment from their employer for the same time period, will be required to repay the UI benefits received .” (emphasis added)
How long does it take to get unemployment benefits after furlough?
Furloughed workers can apply for UI but should understand that they will likely need to pay the money back, if they receive back pay retroactively after the shutdown is over. Here is a good place to start applying for benefits in your state. In some states, it may take up to three weeks from the date of application to receive payments, as claims take time to process and most states have implemented a mandatory one-week waiting period to receive benefits. While each benefit formula varies, workers can expect to receive a benefit of about one-third to one-half of their salary, up to a maximum benefit. A full table that includes minimum and maximum weekly benefits is at the U.S. Department of Labor’s Employment and Training Administration site.
Do I have to repay unemployment?
It’s critical that workers understand that if they apply for and receive UI benefits, but then later receive back pay (as most federal employees, but not contractors, have after previous shutdowns), they will very likely be required to repay the UI benefits they received. However, that doesn’t mean that workers should not apply for benefits in the first place. Unemployment Insurance exists as a backstop of income support for workers who are not getting paid, through no fault of their own. UI not only helps mitigate financial hardship for workers and their families, but also helps sustain local economies as well.
Is unemployment insurance good for the shutdown?
The government shutdown is hurting workers and families across the country—many of whom do not earn enough money to withstand this shutdown financially. Unemployment Insurance (UI) is an earned benefit that may provide some temporary financial help to workers and families, once they have carefully considered their options.
Can you get back pay after furlough?
While state laws vary, if a furloughed worker receives back pay after the shutdown ends, the worker will most likely be found to have a UI “overpayment”— which the state will then seek to recover. The state UI agency will issue a notice requesting repayment, and seek other means to recover the benefits if necessary. Thus, workers should immediately repay the state workforce agency as soon as they are awarded back pay, as the agency could still charge penalties for not repaying overpayments in a timely manner.
If your hours were reduced due to COVID-19
Some states allow you to apply for unemployment benefits if your hours have been significantly reduced.
Freelance workers and COVID-19
Freelance workers, unfortunately, do not have access to unemployment benefits like W-2 workers. However, the government is working on a stimulus package that might help.
Gig economy workers and COVID-19
As freelancers, there are no unemployment benefits for workers in the gig economy (such as Postmates, Uber, or Lyft drivers). That means they lack access to the ability to stop working and still take care of their expenses during times like these.
COVID-19 Unemployment Benefits
The federal government allowed states to change their laws to provide COVID-19 unemployment benefits for people whose jobs have been affected by the coronavirus pandemic.
Find COVID-19 Vaccine Locations With Vaccines.gov
Vaccines.gov makes it easy to find COVID-19 vaccination sites. Select which vaccine you want and search by zip code. Depending on your location, you may be able to choose from pharmacies, health department clinics, and other health care providers.
Do you have a question?
Ask a real person any government-related question for free. They'll get you the answer or let you know where to find it.
How many staff members are on the government shutdown?
Depending on the length of the government shutdown, the number of staff covered to work during the shutdown varies. For a shorter lapse in funds (three days or less), only three staff members are kept on. During longer shutdowns, this number is increased to eight to avoid a slow down in the distribution
What does the debt ceiling mean for Republicans?
Republicans would like the public to believe that by increasing the debt ceiling they are signaling their approval of Democratic plans to increase the debt. That is not the case, as MSNBC’s Jonathan Capehart explained by saying: “ The debt ceiling is a measure that dictates how much money the Treasury can borrow to cover the debts they already have .”
What happens if the debt ceiling is not raised?
If the debt ceiling is not raised, the Bipartisan Policy Center estimates that between 15 October and 4 November, the Treasury “ will most likely have insufficient cash to meet all its financial obligations. ” If this were to happen, the BPC projects “Treasury will be unable to meet approximately 40% of all payments due in the several weeks that follow. ”
Did the debt ceiling increase under Trump?
Under President Trump, the national debt grew by $7.8 trillion, and many Republicans happily voted to increase the debt ceiling. However, now they are withholding their votes, arguing that it is the only way to avoid Democrats enacting their agenda. They have described the measures included in Presidnet Biden’s Build Back Better agenda as “ socialist ,” with Indiana Congressional Democrats are asking for a blank check to continue their reckless spending spree that will add to the record-high inflation rates, raise taxes, and expand the federal government’s role in Hoosiers’ everyday lives.”
How long does unemployment last?
Through the American Rescue Plan passed in March, President Joe Biden extended all of these programs, including the maximum duration from 24 to 53 weeks. In states with high unemployment, people could receive up to 86 weeks of benefits.
Is unemployment insurance available to salaried workers?
Each state sets its own guidelines on how it issues unemployment insurance. In many cases, unemployment is available to salaried workers that lose their jobs through no fault of their own.
