What Furloughed Workers Need to Know About Filing for Unemployment Benefits

Are federal workers eligible for unemployment benefits? Yes. Federal employees who are laid off, including those furloughed this week, are eligible to receive unemployment benefits. In general, for workers to be eligible they must have lost their job through no fault of their own, not quit or have been fired, and must have been employed long enough to meet state qualifications.

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If Congress votes to reimburse federal employees, will they have to repay their unemployment benefits? Most likely, yes. States say they’ll attempt to recoup benefits paid to federal employees if the workers receive back pay once they’re back on the job.  (Congress will decide that when it ends the shutdown.) States would notify workers that they owe the money back. Officials in several states said that if workers don’t voluntarily repay, the state would garnish wages, tax refunds and deny future unemployment benefits to recoup the money.

Where should workers file a claim? In the jurisdiction where they worked. Claims are tied to where their employer is located, not where the worker lives. In the case of federal workers, the location is the assigned “duty station” during the past year. For example, a worker who lives in Illinois but reports to an office in St. Louis would file in Missouri. Contact information for all state unemployment offices can be found here.

How soon can a furloughed federal worker file? It varies by state. Maryland and the district of Columbia began accepting applications Tuesday. The District, however, is requiring workers who did not obtain the proper documents before departing to wait until Friday. Virginia advises that workers should be unemployed for “at least one week” before submitting an application.

How do workers file? Again, it varies widely. The District says it will only accept online applications from federal workers. Conversely, Virginia requires a paper application be faxed or mailed. In California, federal workers can apply by mail, phone or online, but they may have to mail in additional documentation.

How long will it take to receive payment? Likely several weeks. In many states, workers are not eligible for benefits during the first week they’re unemployed. So in Virginia, for example, furloughed workers would need to be unemployed for two weeks before even being qualified and then wait additional time to actually receive a payment.  Other states may allow workers to claim benefits starting on the first day they’re unemployed, but federal workers may not be eligible based on the amount of income they earned Monday and Tuesday. The District is warning that claims processing may take longer than normal because federal agencies aren’t open to provide the necessary documentation.

What documentation do federal workers need? Under normal circumstances federal workers need form “SF-50” to apply for unemployment benefits. But most workers did not receive one when the furloughs began. The Office of Personnel Management advised that “agencies should not prepare an SF-50… at the outset of a shutdown furlough.” As a result, states may require additional documentation such as pay stubs and W-2 tax forms. Typically, information provided by workers is verified with employers, but Maryland and West Virginia said they might skip that step for now.

Will federal workers draw down state benefit coffers? No. They tap a different pool of money through the Unemployment Compensation for Federal Employees program. The funds come from individual federal agencies, not state insurance programs. Still, states administer the payments and state law determines eligibility for benefits.