Key Takeaways
- Oregon recently joined several other states in ensuring unemployment insurance for workers participating in strikes.
- Guaranteed unemployment insurance for striking employees is a significant change, as this benefit was previously prohibited by Oregon law.
- Businesses should continue to monitor developments in this space, as similar legislation appears to be picking up momentum nationwide.
Oregon Governor Tina Kotek signed SB 916, making Oregon the latest state to enact legislation permitting striking works to collect unemployment insurance (UI) during labor disputes, on June 24, 2025. The law repeals Oregon's previous prohibition on UI benefits for striking workers. While other states' legislation extends UI benefits to striking workers in the private sector only, SB 916 takes the unprecedented step of extending them to striking workers in the private and public sectors. The law becomes effective January 1, 2026.
Oregon law previously provided UI benefits to unionized employees during a lockout only. SB 916 provides that striking workers who are otherwise eligible for UI benefits are not disqualified for any week that the individual is unemployed due to a strike or lockout. Striking workers are required to wait two weeks before qualifying for benefits, which are capped at 10 weeks.1 The employee is required to repay the benefits if they are overpaid due to later receipt of back pay. School districts are required to deduct UI benefits charged to them from employees' future compensation for the applicable weeks during a labor dispute.
Historically, most states have prohibited striking workers from receiving UI benefits. However, the landscape is shifting. In April 2025, Washington passed SB 5041, allowing individuals on strike to receive up to six weeks of UI benefits. New York and New Jersey also have passed legislation providing UI benefits to striking workers.2 Waiting periods for benefit eligibility range from 14 to 21 days, depending on the jurisdiction.
Despite some recent momentum, efforts to pass legislation allowing striking workers to collect UI have not been uniformly successful. Ten other states introduced similar legislation, but none ultimately signed it into law.3 Employers should be cognizant that these efforts could be revived in future legislative sessions. For instance, in Delaware, striking workers are already entitled to UI benefits during lockouts (as was the case in Oregon). In January 2025, Delaware's 153rd General Assembly introduced legislation4 proposing to grant UI benefits to employees even when a labor dispute does not constitute a lockout. The bill was reported out of the Labor Committee on April 9, 2025.
The recently enacted Oregon law and similar legislation in other states could have a significant impact on labor negotiations, potentially increasing worker leverage and the frequency of strikes. Employers in service industries could also be persuaded to consider hiring replacement employees. Legislation such as SB 916 could also have a negative financial impact on state UI systems. In California, Governor Gavin Newsom said that he vetoed the bill partially because the expansion of eligibility for UI benefits would further increase the state's outstanding federal UI debt. Additionally, critics of laws allowing striking workers to collect UI contend that the legislation could negatively affect public services by incentivizing strikes.
As more states consider legislation to provide UI benefits to striking employees, employers should stay up to date on these laws and consult with experienced counsel to navigate this complex landscape. Perkins Coie will continue to monitor developments and lend its insight.
Footnotes
1. An earlier version of the bill capped benefits at 26 weeks.
2. See S4573 (New York); A4772 (New Jersey).
3. The 10 states that introduced similar legislation are California, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Ohio, Pennsylvania, and Rhode Island.
4. See SB 26.
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