Is it illegal to withhold workers’ pay during a government shutdown? The law
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- Hundreds of thousands of federal workers will face shutdown furloughs and no pay.
- Furloughed employees cannot work but receive retroactive back pay after shutdown.
- Eligible workers can file UCFE; North Carolina benefits cap at $350 weekly for 12 weeks.
During the government shutdown, hundreds of thousands of federal workers are expected to be furloughed.
A furlough basically means putting an employee on temporary leave without pay, not for discipline, but because there’s no work or money to keep them on the job, according to the Office of Personnel Management.
“Shutdown furloughs” apply to workers who aren’t considered “excepted,” or essential. Those employees have to stop working until funding is restored.
But is it legal for federal employees to work without pay? Are they eligible for unemployment? Here’s what you need to know.
Is it legal to not pay government workers?
Furloughed federal employees aren’t allowed to work and don’t get paid while the government is shut down, but they’re required to receive back pay once it ends, thanks to a 2019 law, according to the Committee for a Responsible Federal Budget (CRFB).
Federal contractors, on the other hand, usually aren’t paid for the time they miss, the CRFB says.
When the 2018-2019 shutdown began, about 380,000 federal employees were furloughed, according to the American Federation of Government Employees. That number was lower than in past shutdowns because big agencies like Veterans Affairs and Defense were already funded.
Another 420,000 employees still had to show up to work but didn’t get paid until the shutdown was over, according to the CRFB. As the weeks dragged on, agencies including the IRS and State Department called more workers back to keep things running.
The Charlotte Observer reached out to Committee for a Responsible Federal Budget for more information but had not heard back by publication.
Are furloughed federal employees eligible for unemployment?
If parts of the federal government shut down, some federal workers might be able to apply for Unemployment Compensation for Federal Employees, or UCFE. It works just like regular state unemployment benefits and follows the same rules.
To apply for unemployment in North Carolina, you’ll need the following:
- Your Social Security number or, if you’re not a U.S. citizen, your Alien Number and expiration date
- Work history from the past two years, including employer information (gather any W-2s or pay stubs), total wages, employment dates and pay rate
- Information about why your job ended
- Information about any separation pay or retirement income you get
- Your bank routing number and account number to set up direct deposit. If you do not choose direct deposit, your benefits will be paid on a DES debit card.
Former federal employees will also have to provide an SF-50 form and SF-8 form, but you can file a claim without these documents and provide them later.
In North Carolina, people who qualify for unemployment can get up to $350 a week for as many as 12 weeks, according to the state’s Division of Employment Security. Payments usually start showing up about two weeks after you file a claim.
This story was originally published October 2, 2025 at 3:33 PM.
