We may earn commissions if you use the recommended services on this site.  

A Guide to Unemployment Benefits for Striking Workers

Latest Business News

Understanding Unemployment Benefits for Workers on Strike

Varying State Policies on Unemployment Benefits for Striking Workers

As worker strikes become more prevalent in 2023, the issue of providing unemployment benefits to individuals on the picket line is gaining attention. While there is currently no federal law guaranteeing jobless aid for strikers, some states have taken matters into their own hands. New York and New Jersey have implemented policies that offer unemployment benefits to workers who withhold their labor in protest of their employment conditions. Additionally, other states like California, Massachusetts, Connecticut, and Pennsylvania have recently introduced legislation to provide similar benefits.

Federal Efforts and Labor Activists' Push

There is also an ongoing effort at the federal level to expand the unemployment program to include strikers. Labor activists are advocating for this change, recognizing the need for support during the hardship and uncertainty of a strike. Michele Evermore, a senior fellow at The Century Foundation, highlights the generational shift in labor activism and the growing realization of the necessity for assistance during strikes.

Critics' Concerns and Disadvantages for Employers

Critics argue that providing jobless aid to strikers puts employers at a disadvantage during negotiations and may even encourage workers to go on strike. Some lawmakers, like Republican state senator Rob Sampson in Connecticut, view this notion as absurd, emphasizing that workers voluntarily choose to walk off the job. However, the increasing number of strikes in recent years, with 312 strikes involving approximately 453,000 workers in 2023 compared to 180 strikes and 43,700 workers over the same period two years ago, suggests a growing need for addressing the issue.

State-Specific Benefits and Eligibility

New York has long offered jobless benefits to striking workers, even before federal law mandated unemployment insurance. In 2020, state lawmakers significantly reduced the waiting time for eligibility, allowing employees to begin collecting unemployment after just 14 days of being on strike. Workers in New York can typically receive benefits for up to 26 weeks, and if their employer provides back pay after the strike, the state may require the aid to be repaid. Workers on strike in New Jersey may also qualify for unemployment benefits, with the waiting time for eligibility recently reduced to 14 days from the previous 30. New Jersey Governor Phil Murphy emphasizes the importance of these benefits in providing support to individuals and their families during challenging times. Similarly, workers in the state can typically collect unemployment benefits for up to 26 weeks.

National Guidelines and Lockout Situations

Across the country, most workers can collect unemployment benefits if they are affected by a strike, as long as they are not directly participating in the dispute, financing it, or have a direct interest in it. However, in the case of a lockout where workers are willing to perform their jobs but are prevented from doing so by the employer, the majority of states provide jobless benefits to these workers. Understanding the availability and eligibility of unemployment benefits for workers on strike is crucial during labor disputes. State-specific policies and federal efforts play a significant role in determining the support provided to individuals facing financial challenges while advocating for better employment conditions.

Unemployment Benefits for Striking Workers: A Potential Game-Changer for New Businesses

State Policies and Federal Efforts

The increasing prevalence of worker strikes in 2023 has brought the issue of unemployment benefits for strikers to the forefront. While there is no federal law guaranteeing such aid, states like New York and New Jersey have taken the initiative to offer these benefits. Other states, including California, Massachusetts, Connecticut, and Pennsylvania, have recently proposed similar legislation. This growing trend, coupled with ongoing federal efforts to include strikers in the unemployment program, could significantly impact new businesses' labor relations strategies.

The Labor Activists' Push and Critics' Concerns

Labor activists are pushing for these changes, recognizing the need for financial support during strikes. However, critics argue that providing jobless aid to strikers may disadvantage employers during negotiations and potentially encourage more strikes. This argument underscores the complex dynamics that new businesses must navigate when dealing with labor disputes and worker rights.

Implications for New Business Formation

The varying state-specific benefits and eligibility rules for unemployment benefits for strikers could influence new businesses' choice of location. For instance, businesses might prefer states with less generous benefits or longer waiting periods for eligibility to discourage strikes. Conversely, businesses committed to worker rights might choose states with more supportive policies.

The Role of National Guidelines and Lockout Situations

National guidelines allowing most workers affected by a strike to collect unemployment benefits, unless they are directly involved in the dispute, add another layer to this complex issue. The provision of jobless benefits to workers in lockout situations could also influence new businesses' strategies during labor disputes. This hot take suggests that the evolving landscape of unemployment benefits for strikers could significantly impact new business formation, labor relations strategies, and location choices.
Story First Published at: https://www.cnbc.com/2023/10/10/what-workers-on-strike-need-to-know-about-unemployment-benefits.html
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.