Skip to main content

Potential Federal Shutdown: UI for Federal Employees

September 29, 2023

 

Should there be a shutdown of the federal government, federal workers in Vermont may find themselves in a challenging situation, and it's crucial they're aware of the unemployment resources available. Some may consider seeking unemployment insurance (UI) benefits. However, eligibility for this assistance isn't universal.

Federal workers who are furlough may be eligible for benefits; however, under federal law, federal workers who are expected to work without pay (i.e., essential workers) are not eligible for unemployment benefits. 

As the U.S. Department of Labor provides more guidance and clarification, the Vermont Department of Labor will communicate that information to the public. When the government resumes its operations, all federal workers will receive retroactive pay. It's important to note that federal employees who receive unemployment benefits during a shutdown period will be expected to repay those benefits once they receive their retroactive pay.

Federal workers impacted by a shutdown have up to two weeks from the start of the shutdown to open an unemployment claim, so there is no need to call immediately on Monday morning. Once a new claim is opened, federal employees will be asked to complete a wage affidavit form. This certifies how much was received in wages in the months leading up to the shutdown and will be used to calculate the claimant's weekly benefit amount.