HR5206-119

What This Bill Does

The Empowering Striking Workers Act changes the Federal Unemployment Tax Act and Social Security Act requirements for state unemployment compensation systems. It requires compensation to be payable to an individual who is employed but unable to work due to a labor dispute, including indirect inability to work, as though the individual were unemployed. Eligibility begins at the earliest of four dates: 14 days after a strike begins, the date a lockout begins, the date the employer hires permanent replacement workers, or the date the strike or lockout ends and the individual becomes unemployed. The bill defines labor dispute broadly to include controversies over terms, tenure, conditions of employment, or representation, regardless of whether the disputants are in a direct employer-employee relationship. It also modifies the Social Security Act able-and-available-for-work conformity rule so labor-dispute claimants described in the new FUTA rule are not treated like ordinary claimants for that specific requirement.

Who Benefits and How

Striking workers benefit because unemployment compensation would become payable after 14 days or earlier if a lockout, permanent replacement, or post-dispute unemployment occurs. Locked-out workers benefit because eligibility starts on the date the lockout begins. Labor unions benefit because strike participants have a wage-support backstop during qualifying labor disputes. Workers indirectly unable to work because of a labor dispute benefit from coverage even without a direct dispute with their own employer.

Who Bears the Burden and How

State unemployment insurance agencies must update eligibility rules, systems, and adjudication for labor-dispute claimants. Employers in labor disputes bear added pressure because workers may receive unemployment compensation during strikes or lockouts. State unemployment trust funds bear higher benefit costs if more labor-dispute claimants qualify. Employer payroll tax contributors may face pressure from increased unemployment insurance outlays.

Key Provisions

• Expands unemployment compensation eligibility to workers unable to work because of a labor dispute.
• Provides eligibility beginning at the earliest of 14 days after a strike, a lockout, permanent replacements, or post-dispute unemployment.
• Includes indirect inability to work and labor disputes over terms, tenure, conditions, or representation.
• Modifies the Social Security Act able-and-available rule for covered labor-dispute claimants.