Executive Orders and Workplace Terminations of Federal Employees & Contractors: 3 Things to Know About Unemployment Benefits
The Trump Administration’s first two months were marked by tens of thousands of terminations and proposed terminations in the federal workplace. These recent separation decisions have suddenly and significantly affected a notable portion of the workforce in the District of Columbia, Maryland, and Virginia—as well as nationally. The impacts undoubtedly extend to federal contractors (the second largest employer regionally) —with more strain forecasted after President Trump’s February 26, 2025, Executive Order surrounding cutting back on the federal government’s interaction with the private sector.
Dealing with a rapid loss in the workforce can leave both managers and employees at a loss for next steps. Many separated Federal employees and contractors will need to turn to unemployment benefits while they explore additional opportunities, while managers will need to respond to their claims. I recommend that employers and terminated employees consider the following when filing for—and responding to—claims for unemployment benefits:
An employee is typically eligible for benefits if terminated for performance issues. Virginia (and several other states) identifies specific reasons when employees are disqualified from benefits, such as absenteeism, violating a known company rule (i.e., misconduct), or testing positive on a drug test. General “substandard” performance typically leans towards benefits being awarded.
Documentation surrounding the termination benefits both parties. Unemployment benefits are not automatic or guaranteed (even when management does not contest a request for benefits). The Virginia Employment Commission (VEC) typically holds telephonic hearings where evidence (including testimony) is considered before rendering a decision on benefits. I recommend that employers provide a basic separation letter whenever possible. Employees who do not receive a termination letter should endeavor to follow up with management for documentation—while also memorializing any supporting reasons for why they are eligible. Submitting this information in advance of any hearing assists the VEC’s hearing officers and deputies in reaching a determination on benefits. Employers should also engage with their payroll team to ensure that baseline eligibility is met.
Be mindful of resignations and severance agreements. Typically, an employee is disqualified from benefits if they resign from employment. However, Virginia and several other states recognize an exception known as “resign or be fired,”—where an employee is asked to resign and ultimately opts against doing so (meaning they are still eligible for benefits). Employees who are terminated before their identified resignation date may also still qualify for benefits. The VEC also indicates that severance payments received must be reported as part of an applicant’s weekly claim.
Have questions on addressing terminations in the workplace? Reach out to me at tstringham@kramerelias.com or (703) 202-7633 to discuss.
Theodora Stringham focuses her practice on bringing solutions-oriented representation and zealous advocacy to complex issues impacting individuals, organizations, and businesses. Ms. Stringham’s approach focuses on understanding clients’ concerns and providing them with thorough and detail-oriented approaches/options to advance their goals. She has been recognized for her advocacy in the Real Estate and Labor and Employment fields, providing counseling for a wide variety of Real Estate and Labor and Employment concerns.