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Overview

The U.S. Office of Personnel Management (OPM) has prepared human resources guidance for agencies and employees in the event of furloughs. There are two types of furloughs -

An administrative furlough is a planned event by an agency which is designed to absorb reductions necessitated by downsizing, reduced funding, lack of work, or any budget situation other than a lapse in appropriations. Furloughs that would potentially result from sequestration would generally be considered administrative furloughs.  Go to Guidance for Administrative Furloughs [142 KB] for more information.

A shutdown furlough (also called an emergency furlough) occurs when there is a lapse in appropriations, and can occur at the beginning of a fiscal year, if no funds have been appropriated for that year, or upon expiration of a continuing resolution, if a new continuing resolution or appropriations law is not passed. In a shutdown furlough, an affected agency would have to shut down any activities funded by annual appropriations that are not excepted by law. Typically, an agency will have very little to no lead time to plan and implement a shutdown furlough.

Supplemental Guidance for Sequestration and Administrative Furloughs

(As of January 11, 2013)

1. GENERAL

   1. What is sequestration?

      Sequestration is an across-the-board reduction in Federal budgetary resources in all budget accounts that have not been exempted by statute. Under the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012, across-the-board reductions are scheduled to take effect on March 1, 2013, unless legislation is enacted that avoids such reductions. If it occurs, this sequestration will reduce each agency's budgetary resources in non-exempt accounts for the remainder of the fiscal year (which runs through September 30, 2013).

   2. What is a furlough?

      A furlough is the placing of an employee in a temporary nonduty, nonpay status because of lack of work or funds, or other nondisciplinary reasons.

   3. What is the difference between a shutdown furlough and an administrative furlough?

      An administrative furlough is a planned event by an agency that is designed to absorb reductions necessitated by downsizing, reduced funding, lack of work, or any other budget situation other than a lapse in appropriations. Furloughs that would potentially result from sequestration would generally be considered administrative furloughs. Go to the Guidance for Administrative Furloughs [142 KB] for more information.

      In contrast, where there is a lapse in appropriations, a "shutdown" furlough may occur. A shutdown furlough is necessary when an agency no longer has the funds necessary to operate and must shut down those activities that are not excepted under the Antideficiency Act. Many Federal employees may be familiar with these types of furloughs from instances in previous years in which the Government has faced a potential shutdown. For additional information on shutdown furloughs see OPM's guidance for shutdown furloughs related to potential lapse in appropriations.

   4. What factors may an agency consider when identifying employees that would be subject to administrative furlough?

      Agencies are responsible for identifying the employees affected by administrative furloughs based on budget conditions, funding sources, mission priorities, and other factors. See also Procedures and Labor Management Relations Implications on pages 10-21 of OPM's Guidance for Administrative Furloughs.

   5. In planning a furlough, how does an agency account for differences among certain groups of employees or certain work units?

      An agency has discretion to identify which employees will be furloughed and when to schedule furloughs based on its particular needs and mission. An agency should engage in pre-decisional consultation with the exclusive bargaining representative regarding the exercise of its discretion. To the extent required by law or applicable collective bargaining agreement, agencies must bargain with employees' exclusive representative before implementing a furlough.

2. EMPLOYEE STATUS

   1. Should Federal employees report to work on March 1, 2013?

      Employees who are scheduled to work on March 1, 2013, should report for work. Under sequestration, agencies would still have funds available after March 1, but the overall funding for the remainder of the fiscal year would be reduced. This means that agencies will not be executing any immediate personnel actions, such as furloughs, on March 1. If furloughs or other personnel actions prove to be necessary, agencies will provide affected employees the requisite advance notice.

   2. How will I know if I am affected by an administrative furlough?

      Each agency will determine the method and timing of notifying employees of whether they are affected by an administrative furlough, subject to applicable laws, regulations and collective bargaining agreements. Different notification requirements apply, depending on the length of the furlough, and are established by law. As a general matter, employees would be provided at least 30 days notification for an administrative furlough scheduled for 22 workdays or less, and at least 60 days notification for an administrative furlough scheduled for more than 22 workdays. See Procedures - 22 Workdays or Less and Procedures - More than 22 Workdays (Extended Furlough) on pages 10-18 of OPM's Guidance for Administrative Furloughs. In addition to these requirements, specialized notification procedures may apply to particular agencies, where imposed by other laws.

   3. Who should employees contact for information about whether sequestration will impact them and whether they may be furloughed?

      Employees should contact their human resources office for information about how sequestration will impact them and whether they may be furloughed. Bargaining unit employees may also contact their union representatives.

   4. Are furloughed detailees returned to their home agencies following any furlough?

      Detailed employees remain officially assigned to their permanent positions during the detail. During a furlough, each agency will determine the status of their employees on detail within the agency or to another agency.

   5. If I am furloughed, am I separated from service?

      Employees who are furloughed are not separated from Federal service. They are placed in a temporary nonduty, nonpay status.

   6. May I volunteer to do my job on a nonpay basis during any hours or days designated as furlough time off?

      No. Unless otherwise authorized by law, an agency may not accept the voluntary services of an employee. (See 31 U.S.C. 1342.)

3. DESIGNATION OF FURLOUGH DAYS

   1. Can I choose to take my furlough days all at once or spread them out?

      Each agency will determine the timing of when employees take administrative furlough days. For employees represented by labor unions, the timing of furlough days is subject to collective bargaining.

      An administrative furlough will impact each agency differently depending on the extent of the agency's budget reduction. Agencies may need to schedule and implement furloughs in a manner so as to be able to absorb budget reductions over the course of the fiscal year. For example, an agency may furlough employees for one day per pay period for a finite period of time; designate a number of furlough hours that employees must take; designate specific dates as furlough days off; or allow employees to select their own furlough time off.

   2. Can employees be furloughed for half days?

      Yes. Agencies have discretion to schedule an administrative furlough in a variety of ways. See Scheduling Furlough Time Off on page 9 of OPM's Guidance for Administrative Furloughs. For example, OPM encourages agencies to take into account the effect of commuting when multiple partial furlough days are scheduled.

4. PAY

   1. Are furloughed employees entitled to severance pay?

      No. Because furloughed employees are not separated from Federal service, they are not entitled to severance pay.

   2. May employees take other jobs while on furlough?

      While on furlough, an individual remains an employee of the Federal Government. Therefore, executive branch-wide standards of ethical conduct and rules regarding outside employment continue to apply when an individual is furloughed (specifically, the executive branch-wide standards of ethical conduct (the standards) at 5 CFR part 2635). In addition, there are specific statutes that prohibit certain outside activities, and agency-specific supplemental rules that require prior approval of, and sometimes prohibit, outside employment. Before engaging in outside employment, employees should review these regulations and then consult their agency ethics official to learn if there are any agency-specific supplemental rules governing the employee.

   3. Are employees entitled to unemployment compensation while on furlough?

      It is possible that furloughed employees may become eligible for unemployment compensation. State unemployment compensation requirements differ. Some States require a 1-week waiting period before an individual qualifies for payments. In general, the law of the State in which an employee's last official duty station in Federal civilian service was located will be the State law that determines eligibility for unemployment insurance benefits. (See the Department of Labor website "Unemployment Compensation for Federal Employees".) Agencies or employees should submit questions to the appropriate State (or District of Columbia) office. The Department of Labor's website provides links to individual State offices.

5. LEAVE AND OTHER TIME OFF

   1. How will furlough time off affect an employee's leave accrual and benefits?

      Generally, furlough time off is treated like regular leave without pay (LWOP) for leave accrual and benefit purposes.  Detailed guidance can be found under Benefits and Service Credit for Various Purposes on pages 6-8 of OPM's Guidance for Administrative Furloughs.  For additional information, go to the page on the effect of extended LWOP or other nonpay status on Federal benefits and programs.

6. HOLIDAYS

   1. Can employees be furloughed on Federal holidays?

      Yes. Employees may be furloughed for periods of time that include Federal holidays. However, an agency should select the furlough days off on programmatic and administrative grounds that are unrelated to the fact that the period includes a holiday. For example, an agency may not properly furlough employees for a 3-day period, the middle of which is a holiday, for the sole purpose of saving 3 days' pay while losing only 2 days of work. Nor would it be proper to furlough an employee solely on a holiday.

7. BENEFITS

   1. Who pays for the Federal Employees Health Benefits (FEHB) of furloughed employees? Will sequestration impact an employee's benefits under FEHB?

      Agencies continue to be responsible for the agency contribution of any furloughed employees and each employee remains responsible for his or her employee contribution. If an employee's paycheck is insufficient to cover his/her share, the enrollee share will accumulate and will then be withheld from pay upon return to pay status. Detailed guidance on employee benefits during an administrative furlough is found on page 6 of OPM's Guidance on Administrative Furloughs.

8. MISCELLANEOUS

   1. Can agencies offer early retirements (VERAs) or separation incentives (VSIPs) to furloughed employees? Can VERA/VSIP be offered during sequestration? Can VERA/VSIP be offered in lieu of a furlough?

      Both Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payments (VSIP) are programs to incentivize voluntary separations to avoid involuntary personnel actions associated with an agency's decision to restructure its workforce. Agencies with OPM-approved VERA and or VSIP may continue offering these options to covered employees during a furlough.

      VERA and VSIP result in permanent separations from the agency workforce. (Please note that VSIP recipients may not be reemployed by the Federal Government within 5 years unless they repay the VSIP to the agency that paid it.) Furloughs are associated with temporary issues, such as lack of work or funds, with the intention that employees would return to their jobs after the furlough. The agency would decide which option to take based on its situation, e.g., the need to permanently reduce or restructure its workforce or to save funds by furloughing employees.

Supplemental Guidance on Shutdown Furloughs Relating to a Potential Lapse in Appropriations for Some Agencies

Note: This guidance applies to activities that are funded by annual appropriations. Some agency functions have alternative funding sources and, as a result, are not directly affected by a lapse in annual appropriations. Employees performing those functions will generally continue to be governed by the normal pay, leave, and other civil service rules. Agencies should consult with their legal counsel if they have further questions concerning this distinction. Employees should consult with their human resources office. References below to other Q&As refer to Q&As in OPM's general furlough guidance.

1. PAY

   1. Will employees receive a paycheck for hours worked prior to a lapse in appropriations?

      Yes. (See Q&A-D.3. for more information.)

   2. Will furloughed employees eventually receive pay for the furlough period?

      Congress will determine whether furloughed employees receive pay for the furlough period. (See Q&A-D.2.)

   3. Will employees who fall under an exception requiring them to work during a furlough despite a lapse in appropriations (excepted employees) be paid for their services during the furlough?

      Agencies will incur obligations to pay for services performed by excepted employees during a lapse in appropriations, and those employees will be paid when Congress passes and the President signs a new appropriation or continuing resolution. (See Q&A-D.1.)

   4. What happens if the furlough is still in effect on a holiday (e.g., the Christmas and New Year's Day holidays)?

      An employee (including an excepted employee) who does not work on a holiday will not receive pay for a holiday that occurs during a shutdown furlough, unless Congress provides otherwise. (See Q&A-G.1.)

2. LEAVE

   1. If there is a shutdown furlough, how does this impact a separating employee's lump-sum payment for his or her unused annual leave?

      In the event of a shutdown furlough, a separating employee will not receive a lump-sum leave payment until the lapse in appropriations ends and funds are available. (See Q&A-M.1.)

   2. What happens to furloughed employees who are already on paid leave or who are scheduled to take paid leave?

      All paid time off during a shutdown furlough period must be canceled because the requirement to furlough supersedes leave and other paid time off rights. (See Q&A-F.1., F.7., and F.8. for more information.)

   3. May excepted employees use paid leave during a furlough?

      No. Excepted employees also may not use paid leave. Rather, they must be furloughed for any approved absence during the furlough period. (See Q&A-F.2. and F.7. for more information.)

   4. If an employee has properly scheduled "use-or-lose" annual leave before the start of the third biweekly pay period prior to the end of the leave year, but is unable to use some or all of the scheduled leave because of the furlough, does the furlough constitute an "exigency of the public business" that would permit an agency to restore the leave after the beginning of the new leave year?

      Employees in this situation should make every effort to reschedule "use-or-lose" annual leave for use before the end of the current leave year. However, if this is not possible due to a lapse in appropriations, agency heads (or their designees) are encouraged to use their discretionary authority to restore any lost annual leave by determining that the employee was prevented from using his or her leave because of an exigency of the public business - namely, the need to furlough employees because of the lapse in appropriations.

   5. If an employee has properly scheduled use of "restored annual leave" that is due to expire at the end of the leave year (because it is the end of the 2-year restoration period) but that leave is canceled and lost due to lapse of appropriations, may the employing agency restore that leave again?

      Unfortunately, no - unless Congress enacts legislation providing otherwise. There is nothing in existing law or regulation that allows restored annual leave to be restored a second time. In fact, the Comptroller General has determined that unused restored annual leave may not be restored after expiration of the 2-year period. (See B 188993, December 12, 1977)

3. RETIREMENT

   1. If an employee is planning on retiring at the end of December, will a shutdown furlough affect the employee's retirement date?

      If the employee provides notice to the employing agency on or before the requested retirement date, the shutdown furlough will not affect the retirement date. (See Q&A-L.3. and L.a.4. for more information.)

   2. If an employee is scheduled to retire before the end of the leave year with an annual leave balance of over the maximum leave ceiling (e.g., 240, 360, or 720 hours, as applicable) and the furlough prevents the employee's retirement from getting processed until January, does the employee lose his or her annual leave above the maximum leave ceiling?

      No. The employee's retirement would be retroactively applied to a date prior to the end of the leave year, and the employee would receive the full amount of accumulated and accrued annual leave in a lump-sum payment.

4. FEDERAL EMPLOYEE HEALTH BENEFITS (FEHB) OPEN SEASON

   1. Would a lapse in appropriations alter the effective date of an Open Season enrollment if an enrollment request was fully processed by an agency and submitted to the health plan prior to the lapse?

      No. The effective date would still be the first day of the first full pay period in January.

   2. What happens if agency employees responsible for processing paper SF-2809 Open Season enrollment requests are furloughed?

      Agencies will have to determine whether those employees may continue to process the enrollment requests if a lapse in appropriations occurs. If agencies conclude that they cannot, pending enrollment requests will not be processed until those employees return to pay status.

   3. What happens if an individual makes an Open Season enrollment change but the agency did not process the request before the furlough?

      The individual should continue to use the old health plan until he or she returns to pay status and the enrollment is processed to the new health plan.

   4. If an enrollee required healthcare and received coverage under the old health plan, will the new health plan be responsible for the coverage received once the furlough is over?

      Yes.

   5. If a furlough delays processing of Open Season enrollment changes, will the enrollment be retroactive?

      Yes. Per FEHB regulations, all Open Season enrollments and enrollment changes are effective on the first day of the first full pay period in January.

   6. If an individual's health plan is terminating participation in the FEHB Program at the end of the current benefit year, and an Open Season enrollment change has not been processed, what should the individual do in January?

      If the individual needs services urgently, he or she should incur the expenses and file a claim with the new plan once the enrollment change has been processed.

   7. How will someone know whether his or her enrollment request was fully processed and sent to the new health plan?

      If the individual receives an ID card, the enrollment in the new plan is effective. If an ID card is not received, the enrollment has not been processed.

   8. How will someone know if an electronic Open Season enrollment change was fully processed?

      If an ID card is received, the enrollment in the new plan is effective. If an ID card is not received, the enrollment has not yet been processed.

   9. What happens to an individual not currently covered under the FEHB who elected to enroll during Open Season if the enrollment has not been processed and will not be processed until after the furlough? Does this individual still have coverage with the elected plan? If so, when?

      Yes, such an individual would have coverage beginning on the first day of the first full pay period in January. Expenses incurred will be reimbursed by the plan once the enrollment has been processed. We suggest that such individuals ensure they use the plan's providers to get the maximum benefits. For fee-for-service plans, check the health plan's website for a list of network providers. (See Q&A-H.1.)

5. FEDERAL EMPLOYEES DENTAL/VISION PROGRAM (FEDVIP) OPEN SEASON

   1. Will the effective date of my FEDVIP Open Season enrollment be affected?

      No. (See Q&A-H.7.)

6. FLEXIBLE SPENDING ACCOUNT (FSA) OPEN SEASON

   1. Will the effective date of my FSA enrollment be affected?

      No. (See Q&A-H.5.)

Answers to additional questions concerning shutdown furloughs is available on OPM's Frequently Asked Questions for Shutdown Furloughs.