Protesters demonstrated outside the National Oceanic and Atmospheric Administration’s Boulder campus on March 3, 2025, in protest of mass layoffs of federal workers by the Trump administration. (Chase Woodruff/Colorado Newsline)
With thousands of federal employees in Colorado at risk of termination by President Donald Trump and Elon Musk’s so-called Department of Government Efficiency, the state’s labor department is taking steps to help connect workers with unemployment insurance and other resources.
Over 600 former federal workers have filed for unemployment with the state over the last two months, said Cher Haavind, deputy executive director of the Colorado Department of Labor and Employment.
“We certainly want to be prepared to assist you with any unemployment insurance claim questions, and then also provide you with those support services to help you meet your re-employment goals,” Haavind said during a virtual town hall meeting for laid-off employees Wednesday.
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Colorado provides up to 26 weeks of unemployment benefits at 55% of a recipient’s previous wages, through a program administered by CDLE but funded by the federal government. Benefits for former federal workers are subject to certain eligibility requirements under the Unemployment Compensation for Federal Workers, or UCFE, program.
Adjudicating federal unemployment claims under UCFE can be complicated, said Phil Spesshardt, director of CDLE’s Division of Unemployment Insurance, by the fact that federal agencies don’t report quarterly wage figures to the state like typical employers do. He advised claimants to submit pay stubs, bank statements and other documentation as part of their claim, “in case the federal government does not respond to our request for wages.”
“It’s not necessarily the most efficient system in the world, but that’s the one we have from the federal government,” Spesshardt said.
Mass firings of “probationary” employees — those recently hired or promoted — have hit the National Oceanic and Atmospheric Administration, the U.S. Forest Service, the National Park Service and many other agencies with a presence in Colorado. Thousands more of the roughly 50,000 federal employees in the state could be at risk of termination as Musk’s DOGE initiative proceeds with “reduction in force” plans in the coming weeks.
In general, people who voluntarily resigned from their jobs are not eligible for unemployment insurance. But Spesshardt implied that some federal workers who accepted the administration’s controversial “Fork in the Road” buyout offer may be eligible because of its threat of future mass layoffs.
“We’re going to look at what you believe may have been reasonable,” Spesshardt said. “If you have a copy of the ‘Fork in the Road’ letter, make sure you attach and upload a copy of that. Because there are certain things within there that might lead you to believe that if you didn’t accept that anyway, you might have otherwise been terminated or laid off.”
Federal employees who have been laid off and then reinstated can continue to receive unemployment benefits until they return to work, CDLE officials said. But if employees receive back pay, they may have to pay back the benefits they received during that period.
Finally, Spesshardt emphasized that under Colorado law, neither the federal government nor any employer can prevent someone from filing for unemployment.
“There have been rumors out there for some federal employees that may have been told you cannot file a claim, you are not eligible,” he said. “The state of Colorado processing a claim will determine whether your separation constitutes an eligible separation to receive benefits, but it is specifically against Colorado statute to prohibit you from filing an unemployment insurance claim.”
Jessica Greene, deputy chief human resources officer at the Colorado Department of Personnel Administration, joined the town hall to encourage former federal workers to apply for one of the more than 500 open jobs in state government.
“As federal employees, this group knows more than most the value and impact of public service on our citizens,” said Greene. “We would welcome anyone who is interested in continuing their career in public service to apply at the state.”
CDLE will host another town hall at 4 p.m. Thursday. Recordings of both events will be available on the department’s YouTube page.
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