2025 Federal Government Shutdown – Unemployment Insurance Guidelines

Guidance for Federal Employees Impacted by the Government Federal Shutdown

Am I eligible for unemployment insurance benefits?

You may be. If you are furloughed, which means you aren’t working at all, and meet other eligibility requirements, you may be eligible to receive benefits. The best way to find out is to file a claim.

How do I file a claim?

• You can apply for benefits in Frances Online. Unless you already have one, creating a Frances Online account is the first step most people should take.

OR

• You can apply for benefits by calling the Unemployment Insurance Center at 877-345-3484.

You will need to provide your complete work history for the past 18 months, including employer names, addresses, phone numbers, dates of employment, and last duty station. Federal employers do not report your wages to the Oregon Employment Department until you apply for benefits.

Learn more on the Federal Workers page.

If I’m claiming unemployment benefits, do I have to look for work during the federal government shutdown?

To be eligible for unemployment benefits, you must actively seek work. 

If you expect to resume your regular work after the shutdown ends, you are considered actively seeking work if:

• You remain in contact with your regular employer; and
• You can accept and report for any suitable work with that employer.

What will happen if federal workers receive back pay at a later date?

If your employer gives you back pay at the end of a shutdown, you are required to report these earnings.

If you are a federal employee and later receive back pay for the same time period that you received benefits, that is considered to be an overpayment under current federal law. We will send you a decision letting you know that you were overpaid, the amount you were overpaid, and instructions for how to pay back the overpayment.

What if I am required to work during the furlough but am not being paid?

You can still file a claim. If you are an “excepted employee” who is working during the federal government shutdown, you are required to report your hours worked and your expected earnings for the week, even if you don’t know if you will be paid. If you find out you will not be paid for your work during the furlough, contact the Unemployment Insurance Contact Center to request a review of the weeks you claimed.

What if I am a federal contractor?

If you are an independent contractor and not an official federal employee, you are probably not eligible to receive benefits because self-employed workers do not qualify for benefits.

• If you receive a W-2 from the federal government reporting your earnings, you are likely an employee.
• If you receive an IRS 1099 form reporting your earnings, you are probably an independent contractor, but there are exceptions.

There are a number of factors that affect benefit eligibility, so if you believe you were an employee, you should file a claim. More information about establishing a valid claim is in our Claimant Handbook.

Guidance for Non-Federal Employees Impacted by the Government Federal Shutdown

I am not a federal employee, but my employer laid me off or reduced my hours due to the federal government shutdown. Am I eligible?

You may be eligible for benefits. In general, to be eligible, you must be working less than full-time (usually 40 hours per week). In addition, an individual must be able to work, available for work, and actively seeking work during each week in which they wish to receive benefits.

How do I apply for benefits?

• You can apply for benefits in Frances Online. Unless you already have one, creating a Frances Online account is the first step most people should take.

OR

• You can apply by calling the Unemployment Insurance Center at 877-345-3484. You will need to provide your complete work history for the past 18 months, including employer names, addresses, phone numbers, and dates of employment.

What option should I select for my separation reason when completing my online application?

• If you are currently out of work due to the federal government shutdown and no other reason, select the option “Lack of Work/Layoff.”
• If you are still working on a part-time basis, select the option most appropriate to your situation, such as the “Still Working” option.
• If you are out of work for reasons other than the federal government shutdown, select the reason that best fits your situation.

Do I have to look for work while I am laid off or working a reduced schedule due to the federal government shutdown?

To receive benefits, both federal and state law require that you must be able to work, be available for work, and are actively seeking work. There can be differences based on individual circumstances but some general standards apply, including that you do at least five work-seeking activities each week. You must make direct contact with employers for at least two of the five work-seeking activities.  Making direct contact with employers means asking about work or applying for jobs in the way the employer wants.

If your employer informed you that you would be returning to work when the shutdown is over, direct contact with a potential employer includes:

• Staying in touch with your regular employer so you can return to work when you are allowed to do so.
• Registering with temporary staffing agencies for work that you have the skills and experience to perform. Checking in with the temporary staffing agency can count as a direct employer contact for each week.
• If you are working on a reduced schedule, asking your employer for additional hours or shifts.
• Contacting other businesses to see if they have appropriate work for you, even if it is just temporary or part-time work until the shutdown ends (if you normally work full-time).

If your employer is unsure what your status will be after the shutdown is over, you must be willing to seek and accept suitable work, which includes full-time, part-time, and temporary work. If you need assistance in developing a work-search plan, contact any WorkSource Oregon center for additional assistance.

What will happen if my employer decides to provide retroactive pay once the shutdown ends?

If you are paid retroactively during the time period you did not work, you are required to report this back pay as earnings for the week you receive the payment, so you would not have to repay any benefits you received in prior weeks. However, if you are still claiming benefits, you would need to report the back pay in the week you receive payment.

IMPORTANT: If you are a federal employee and later receive back pay for the same time period that you received benefits, that is considered to be an overpayment under current federal law. We review all cases on an individual basis and will send you a decision letting you know if you were overpaid, the amount you were overpaid, and instructions for how to pay back the overpayment.

Where can I find part-time job openings and other resources?

WorkSource Oregon centers can help you. You can find a list of locations and contact information at worksourceoregon.org.

Guidance for Employers Impacted by the Government Federal Shutdown

Are there any resources for an employer that is impacted by reduced funding or lack of business due to the federal government shutdown?

The Work Share program provides an alternative for employers and workers who may be facing a layoff situation. Work Share allows employers to reduce work hours for their employees by providing partial unemployment insurance benefits that supplement workers' reduced wages. This program is available to employers with at least three employees. Once enrolled, an employer can quickly use the program if needed, but there is no obligation. Weekly webinars are offered to help businesses apply for and navigate the program. 

To learn more, visit www.oregonworkshare.org or call 503-947-1800.