Federal Employees and Federal Contractors Impacted by a Furlough

Learn what steps to take when there’s a government shutdown, and how to repay benefits when the furlough ends.

If you are a federal civilian employee or employee of a federal contractor who is permanently separated from employment, learn more about unemployment insurance benefits on our FAQ page.

Unemployment Insurance for Furloughed Workers

If you are furloughed due to a federal government shutdown, you may be eligible for unemployment insurance benefits in Maryland. If you receive retroactive pay (back pay) when you return to work, you must repay the benefits you received.

Who is eligible for unemployment insurance benefits during the shutdown?

Federal employees and employees of federal contractors who are prevented from working and are not being paid due to the federal government shutdown may qualify for unemployment insurance benefits.

• Furloughed (non-“excepted”) federal employees: If you are furloughed because your federal position is not designated as “excepted” (sometimes called “essential”), you may be eligible for unemployment insurance benefits during the shutdown. Employees in “excepted” positions, who are required to work without pay, are not considered unemployed and are not eligible.
  • Note: Federal civilian employees include individuals directly employed by a federal agency, whether on a permanent, term, or temporary appointment. Even if your position is described as “contractual” within the federal personnel system, you are still considered a federal employee for unemployment insurance purposes and should identify yourself as a federal employee when filing. By contrast, if you work for a private company that contracts with the federal government, see below.
• Employees of a federal contractor: If you are employed by a private sector company that contracts with the federal government, and you are furloughed without pay, you may be eligible for unemployment insurance benefits under Maryland’s unemployment system (depending on where your wages were reported). Do not indicate you are a federal employee when you file an initial claim.
  

To qualify for Maryland unemployment insurance benefits:

• Federal civilian employees: Your last official duty station must have been in Maryland. If you now live in another state, you may file there, and your claim will be routed appropriately. However, for the fastest possible processing, we encourage you to file in the state of your last official duty station. If your duty station was outside Maryland and you are a federal civilian employee, you should file in your state of residence or the state of your duty station. That state will determine whether you qualify.
• Federal contractors: You must have performed work in Maryland (wages reported in Maryland) during the “base period” (the 18 months before you first applied for unemployment insurance benefits). If your work was not performed in Maryland, please contact the state you worked in to learn more about whether you may qualify for unemployment insurance benefits.

Learn about the unemployment insurance process and how to file a claim.

Who is not eligible for unemployment insurance benefits during the shutdown?

• Excepted federal employees: If you are an “excepted” federal civilian employee (sometimes called “essential”) who is required to continue working during the shutdown, you are not unemployed and are therefore not eligible for unemployment insurance benefits. However, you may be eligible for a $700, no-interest loan through the Federal Shutdown Loan Program. More information about this program.
• Active duty military: If you are “military on active duty,” you are not unemployed because you are still working. Therefore, you are not eligible for unemployment insurance benefits.

Federal Shutdown Loan Program

If you are an excepted civilian or non-civilian federal employee who is still working but not being paid due to the shutdown, you may be eligible for a $700, no-interest loan through the Federal Shutdown Loan Program, coming soon. See the loan program page for details or apply today.

Pause of Foreclosure Proceedings

If you are a federal government employee who has been involuntarily furloughed, or are required to work without pay during a federal government shutdown, and a foreclosure action has been filed in court against you on your primary residence, you may qualify for a temporary stay (“pause”) of the foreclosure proceedings under Maryland law .

To request a stay, you must file a motion with the court where the foreclosure action is pending and provide satisfactory evidence of your furlough or unpaid status. If you meet the requirements, the court is required to grant the stay [see Md. Code Ann. Real Property § 7-105.1(b-1)].

If you need help finding a lawyer to assist with your foreclosure proceedings visit msba.org/site/site/content/Resources-and-Tools-Content/For-The-Public.aspx.

Frequently Asked Questions 

Still have general questions?

You can contact the Maryland Division of Unemployment Insurance claims agents by:

• Phone: 667-207-6520, Monday through Friday, 8 a.m. – 4 p.m.

Quick Links

• Understanding the Unemployment Insurance Benefits Process
• Federal Employee FAQs
• Audits and Overpayments
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