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    Home»Business»Striking workers could lose unemployment benefits in blue states
    Business

    Striking workers could lose unemployment benefits in blue states

    Justin M. LarsonBy Justin M. LarsonJuly 16, 2025No Comments3 Mins Read
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    Parents Defending Education founder and President Nicki Neily discusses the state of the U.S. education system on ‘Making Money.’

    FIRST ON FOX: Republican lawmakers are introducing legislation on Wednesday that would prohibit striking workers from receiving unemployment benefits, as states like Oregon, Washington, New York, and New Jersey all offer coverage for those workers.

    The Securing Help for Involuntary Employment Loss and Displacement (SHIELD) Act would make it a federal requirement that an individual applying for unemployment is not disqualified soley due to a “strike or other labor dispute,” with the exception of a lockout. However, it would bar unemployment benefits if they individual is “providing financial support to or has a direct interest in” the dispute.

    “Choosing not to work is just that, a choice,” Rep. Rudy Yakym, R-Ind., said in a statement on the legislation he’s sponsoring.

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    striking Boeing workers on picket line

    Striking Boeing workers hold rally at the Boeing Portland Facility on Sept. 19, 2024, in Portland, Oregon. The International Association of Machinists and Aerospace Workers, representing Boeing workers, said on Sept. 18 the aviation giant was not “ta (JORDAN GALE/AFP via Getty Images / Getty Images)

    “While far-left states like Oregon and Washington are busy handing out unemployment checks like participation trophies to anyone who walks off the job, the SHIELD Act puts an end to that nonsense. These radical policies disrupt the labor market, let workers walk off the job without consequences, and leave small businesses high and dry. If you choose to strike, you don’t get to collect a check from hardworking Americans, plain and simple,” he added.

    A major business group, the National Federation of Independent Business, is backing the proposal.

    “The SHIELD Act restores fairness to the unemployment system by ensuring benefits go to individuals who are involuntarily unemployed,” said Tyler Dever, vice president of government relations at the NFIB. 

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    SAG-AFTRA members carry signs while on strike

    SAG-AFTRA members were on strike for four months. (Mario Tama / Getty Images)

    “It brings balance to the employer-employee relationship and supports small businesses struggling to fill open positions. NFIB urges Congress to pass this legislation to protect the integrity of the system and strengthen the small business economy,” he added.

    The legislation is co-sponsored by Reps. Aaron Bean, R-Fla.; Mike Kelly, R-Pa.; Blake Moore, R-Utah; Nathaniel Moran, R-Texas; Greg Murphy, R-N.C.; David Rouzer, R-N.C.; Claudia Tenney, R-N.Y.; and Beth Van Duyne, R-Texas.

    The governors of both Oregon and Washington signed laws earlier this year allowing for striking workers to receive unemployment benefits.

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    Cassidy Fleser of Biddeford joins fellow Starbucks workers in Biddeford as they participate in the Red Cup Rebellion, a nationwide strike demanding the company fully staff union stores and bargain in good faith. The one-day strike on Thursday was pla (Derek Davis/Portland Press Herald via Getty Images / Getty Images)

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    “Workers joining together in union and collectively bargaining to improve working conditions is as American as apple pie,” April Sims, president of the Washington State Labor Council, AFL-CIO, said in a statement in May.

    “But with stagnant wages and a rising cost of living, many workers don’t have a safety net if they are pushed to strike. Providing UI for striking workers will level the playing field by encouraging employers to bargain in good faith and making it harder for bad bosses to starve workers out. UI benefits will help striking workers survive while they fight for the union contract that will help them thrive,” Sims continued.



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