Unemployment Compensation for Federal Employees
The UCFE program provides unemployment compensation for federal employees who lost their employment through no fault of their own. UCFE is administered by the state, which acts as an agent of the federal government. In general, the unemployment insurance laws of the state in which the former Federal employee had his/her last official duty station in federal civilian service will be used to determine eligibility for UCFE benefits. Accordingly, the same terms and conditions that apply to individuals eligible for regular state UI apply to UCFE claimants.
General Information about the UCFE Program:
- Fact Sheet: This fact sheet provides general information on the UCFE program.
- Questions and Answers for Federal Employees and Contractors: Provides answers to common questions asked by former federal civilian employees applying for and receiving UCFE benefits, such as how to apply, where to apply, documentation needed to file a claim, and next steps after applying.
- Federal Identification Code (FIC) Chart (February 2025): Listing of each Federal Agency Identification Code needed by state agencies to process UCFE claims.
Information for Federal Employers:
- UCFE Training for Federal Agencies: This training provides federal agencies with guidance on how to complete a request for wage and separation information. PowerPoint Transcript
- UCFE Instructions for Federal Agencies: This is a comprehensive instruction for federal agencies related to the UCFE program. It outlines the program requirements and agency responsibilities and provides instructions and descriptions of all UCFE-related forms.
- UCFE Determinations Guide — Federal Agencies’ Responsibilities: This guide is intended to provide federal government agency employers with information on their responsibilities for responding to state unemployment insurance agencies when their ex-employees file for Unemployment Compensation for Federal Employees benefits.
Eligibility
To qualify for benefits, certain conditions must be met each week that benefits are payable.
To be eligible, you must be:
- Unemployed
- Physically and mentally able to perform suitable work
- Available for work
- Making a reasonable effort to find work (visit Arkansas LAUNCH)
- Free of participation or direct interest in a labor dispute
- Free of disqualification (see below)
In addition to the requirements above, a waiting period of one week (called a “waiting week“) must be served before benefits are payable to you.
Some disqualifications that could impact your eligibility for unemployment benefits include:
- You left your job for personal reasons, not related to work
- You were fired for misconduct
- You are currently receiving workers’ compensation
- You refuse to apply for or accept suitable work
- You refuse recall after being laid off
- You are on leave through the Family Medical Leave Act (you are not considered unemployed)
- You are not legally allowed to work in the United States
- You are self-employed
Federal Worker FAQs
The maximum weekly benefit amount of UCFE is based on state law; the amounts will vary. In Arkansas, the maximum weekly benefit amount is $451, and the minimum is $81.
Employees who worked for a private sector employer that contracted with the federal government and who lost their job through no fault of their own can apply for regular unemployment insurance.
Individuals who are disqualified or denied benefits have the right to file an appeal. The employer may also appeal a determination if it does not agree with the state’s determination regarding an individual’s eligibility. If you wish to file an appeal to the Appeal Tribunal, follow the instructions on your Notice of Agency Determination or download a Request for Appeal to Appeal Tribunal form.
Federal Employer FAQs
Yes. The federal government does not pay unemployment tax on its workers because UCFE is a “reimbursable” benefit. That means that when an employee of the federal government is laid off, they can apply for unemployment benefits in the state their duty station is in, and the federal government is supposed to reimburse them dollar for dollar for the amount the claimant is paid. UCFE benefits mirror regular unemployment benefits in the state where the worker applies for benefits. The U.S. Department of Labor is responsible for sending UCFE bills to Federal agencies based on information provided by the individual states regarding payments made to eligible individuals.
The state UI agency (Arkansas Division of Reemployment) will notify the appropriate Federal agency when a claim has been filed. A notice, Form 931, Request for Wage and Separation Information, will be sent to the Federal agency advising that a claim was filed. A response is due from the Federal agency within 12 days.
More Resources
- FEEA 2025 Resources for Feds
- 10 Things Federal Workers Should Know About Unemployment Compensation for Federal Employees
- UCFE Fact Sheet
If you have a hearing or speech disability, dial 711 to reach the Arkansas Relay.