Only furloughed fed workers eligible for Colorado’s state unemployment benefits

Not every federal employee who is going without pay because of the government shutdown can draw on state unemployment insurance benefits to cover the gap. And even those who tap benefits should plan on paying the money back eventually.

As the federal government shutdown enters its 18th day, and as bank account balances dwindle, some federal workers are becoming more desperate to find income to tide them over until the uncertain day Congress passes a spending bill.

“Employers may not prohibit a worker from filing for unemployment insurance benefits under any circumstances,” said Cher Haavind, the deputy executive director of the Colorado Department of Labor and Employment, during an online webinar for federal workers held Friday. “It does not mean a worker will be determined to be eligible, but your employer may not restrict you from applying.”

The CDLE counts about 54,300 federal workers, excluding military, in the state. So who is eligible? There are three categories of federal workers during the current shutdown — furloughed workers who don’t work and don’t get paid; “excepted” workers who must report to work and don’t get paid and exempted workers who work and get paid.

In a bureaucratic twist, those holding “excepted” roles and working their full shifts aren’t eligible to collect state unemployment benefits. Those on furlough and not working, who are in a better position to take on side gigs, are eligible for Unemployment Compensation for Federal Employees or UCFE.

A definitive breakout isn’t available, but some estimates put the share of excepted workers at 55% to 60% of the total. They include FBI, TSA and Border Patrol agents, staff at federal prisons, National Weather Service forecasters, food and safety inspectors and active duty military.

Exempt workers, about 5% of the total, are still working and still getting paid through independent funding sources. They include U.S. Postal Service workers and employees of the Federal Reserve. Furloughed workers are at around 35% to 40% of the total. They are on unpaid leave and waiting to be called back.

Complicating a count, different workers at a given agency can fall into different categories. About 81% of workers at the U.S. Department of Commerce are on furlough, while only 5% of those at Homeland Security are, according to Reuters. And some workers cross categories, working part of the week and on leave the rest.

The CDLE has set up a page on its website to help federal workers navigate the claim process.

Federal employees have two additional forms to file when they apply for unemployment benefits, said Phil Spesshardt, who directs the state’s Division of Unemployment Insurance.

Unemployment benefits in Colorado cover 55% of the average weekly wage paid over the prior five quarters. Private employers report wages quarterly for each employee, and based on that, pay a premium into a state fund that covers benefits. The state knows what it needs to pay when those workers file.

But the federal government works on a reimbursement system and doesn’t report wages to the state, adding some extra steps. Federal workers must obtain two additional forms — an SF-8, which verifies federal employment and the SF-50, which verifies a worker is on furlough or has lost their job.

Given that human resources departments at federal agencies are operating at limited capacity, workers may not receive those forms in a reasonable amount of time. Furloughed federal workers can expedite their unemployment claims by filing a Form ETA-935, which details their status and pay. To support that form, workers should file copies of pay stubs from this year and their W-2 statements from last year.

Spesshardt and Haavind urged eligible federal workers to file quickly if furloughed or suffering a job loss because of a reduction in force. But they also urged them to be patient.

“Benefits are generally paid within four to six weeks. Each claim has to be adjudicated. Each separation is different, each claim is different,” Haavind said. “It can take a month before payments start flowing.”