State Provided Unemployment Benefits for Striking Workers

​State Provided Unemployment Benefits for Striking Workers

In Washington state, new legislation has been proposed to allow striking workers to receive unemployment benefits, even though they are able to work. Senate Bill 5041, prefiled for the 2025 legislative session, aims to provide unemployment insurance benefits to workers involved in strikes or lockouts. 

This proposal follows a similar attempt in 2024 with House Bill 1893, which sought to grant up to four weeks of unemployment benefits to striking workers. Despite passing the House, HB 1893 failed to reach the Senate floor before the cutoff deadline, effectively halting the bill for that year. 

While the intent of SB 5041 is to support workers during labor disputes, it raises concerns about potential negative impacts on businesses and the state's unemployment insurance (UI) fund.

Impacts on Businesses:

    • Increased Financial Burden: Employers fund the UI system through payroll taxes. Allowing striking workers to access these benefits could lead to higher taxes for businesses, as they would be responsible for covering the costs associated with strikes, even when not directly involved. 
    • Prolonged Labor Disputes: Providing financial support to striking workers might reduce the urgency to resolve disputes, potentially leading to longer strikes. Extended strikes can disrupt business operations, supply chains, and overall productivity. 

Impacts on the Unemployment Insurance Fund:

    • Strain on Resources: The UI fund is designed to assist workers who lose their jobs through no fault of their own. Extending benefits to those voluntarily striking could deplete resources, potentially affecting the fund's ability to support unemployed individuals genuinely in need.   
   • System Sustainability: An increased number of claims from striking workers may necessitate higher employer contributions to maintain the fund's solvency, further burdening businesses and possibly leading to increased costs for consumers. 
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As the 2025 legislative session approaches, stakeholders, including business owners, workers, and policymakers, will need to carefully consider the implications of SB 5041. Balancing support for workers during labor disputes with the economic health of businesses and the sustainability of the unemployment insurance system will be crucial in determining the viability of this proposed legislation.