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1 1 (April 11, 2024)

handle is hein.crs/goveoyh0001 and id is 1 raw text is: Congressionol Research Service Informing the Iegisl9tive debate since 1914 0 April 11, 2024 Unemployment Compensation, Labor Disputes, and Strikes Introduct on Labor disputes among workers and employers may involve temporary work stoppages. Strikes occur when workers initiate the work stoppage. Lockouts happen when employers refuse to allow employees to work. For 2023, the U.S. Bureau of Labor Statistics (BLS) reported that a total of 33 major work stoppages involving 1,000 or more workers began, impacting approximately 458,900 workers. This is the largest number of major work stoppages since 2000 (when there were 39). Because of the complexity of most labor disputes, BLS' estimates do not distinguish between strikes and lockouts in its work stoppage statistics. Workers involved in a strike or lockout may or may not be members of a union. In the case of strikes or lockouts involving union members, unions may provide their members with payments in the form of strike assistance if they have the financial resources to do so. Additionally, there has been state and federal legislation introduced to provide striking workers with income replacement through the Unemployment Compensation (UC) program. This In Focus discusses the role of UC in labor disputes and strikes, including current UC eligibility and disqualification related to labor disputes as well as examples of recent state and federal legislation to expand UC access in labor dispute situations. It also summarizes the role of union strike assistance. Unempo yment Compensation The joint federal-state UC program provides income support through UC benefit payments. The UC program is financed through employer taxes imposed by the Federal Unemployment Tax Act (FUTA) and state payroll taxes required under each state's State Unemployment Tax Act (SUTA). Although there are broad requirements under federal law regarding UC benefits and financing, state specifics are set out under each state's laws. States administer UC benefits with U.S. Department of Labor (DOL) oversight, resulting in 53 different UC programs operated in the states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The UC program's two main objectives are to (1) provide temporary partial wage replacement to involuntarily unemployed workers and (2) stabilize the economy during recessions. For additional background on UC, see CRS In Focus IF10336, The Fundamentals of Unemployment Compensation. UC Eligibility and Disqualfication The UC program generally does not provide UC benefits to the self-employed, individuals who are unable to work, or individuals who do not have a recent earnings history. Eligibility for UC benefits is based on attaining qualified wages and employment in a position that is subject to unemployment payroll taxes (i.e., Federal Unemployment Tax Act or state unemployment taxes) as well as most state and local government employment. To receive UC benefits, claimants must be able, available, and actively searching for work. UC claimants generally may not refuse suitable work, as defined under state laws, and must maintain their UC eligibility. The methods states use to determine eligibility vary across state UC programs. An ineligible individual is prohibited from receiving UC benefits under a state's laws until the condition serving as the basis for ineligibility no longer exists. UC eligibility is generally determined on a weekly basis. In addition, states may disqualify claimants who lost their jobs because of inability to work, voluntarily quit without good cause, were discharged for job-related misconduct, or refused suitable work without good cause. In this situation, which is distinct from ineligibility, an individual has no rights to UC benefits until she or he requalifies under a state's laws, usually by serving a predetermined disqualification period or obtaining new employment. In some situations, UC benefits may be reduced or wage credits may be cancelled for disqualified individuals. ork Stoppages and UC Federal law does not specify whether an individual experiencing a period of unemployment due to a labor dispute should be considered ineligible or disqualified for UC benefits. Most state laws will find that claimants who voluntarily left the job due to a labor dispute are subject to disqualification and would not be eligible for UC until the labor dispute is resolved. Unions generally oppose this approach and assert that access to UC is beneficial to the economy by supporting striking workers while they exercise their right to strike for better pay and workplace conditions. In contrast, employers generally oppose expanding UC benefits to actively striking workers, arguing that such entitlement would punish employers by effectively funding the strikes through increases in the employers' state UC taxes, which help fund the UC program. In most states, when a striking worker is deemed disqualified for UC because of the labor dispute, there is no reduction or cancellation of UC benefit entitlement. Instead, the denial period remains in place until the dispute is resolved. Once resolved, the worker may be eligible to receive UC if she or he continues to be unemployed. Table

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