A bill that allows workers on strike or are subject to an employer lockout to access unemployment (UI) benefits has been reintroduced in 2025. AWC opposed similar legislation that failed to pass in 2024.

SB 5041 is sponsored by Sen. Marcus Riccelli (D–Spokane). It removes the prohibition against paying out unemployment benefits to workers subject to an employer lockout and removes the disqualification against UI benefits for striking workers following the second Sunday after the start of a strike, provided that the strike is not found to be prohibited by federal or state law in a final judgment. If the strike is prohibited, any benefits already paid out are subject to repayment by the worker. Any UI benefits paid to striking workers would be applied to the employer's experience rating used to calculate the employer’s UI premiums. The bill also provides that an overpayment assessment will apply to a striking worker’s UI benefits if the employer provides retroactive wages for any week the employee received benefits.

AWC opposed similar legislation in 2024, and opposes this version of SB 5041 today for several reasons. Under state law, public employees generally do not have the right to strike, and contract disputes are instead handled through mediation or binding arbitration. However, the language of SB 5041 requires a “final judgment” declaring a strike illegal to avoid the costs of UI benefits to striking workers. Final judgments are rare in strike cases, and the requirement to obtain one adds a lot of time, expense, and an extra layer of legal process in order for cities to avoid the cost of unemployment benefits that never should have been paid in the first place. The change could also serve as an unnecessary incentive for public sector unions to unlawfully strike in hopes of securing benefits and while avoiding final judgement in lieu of a settlement.

AWC will work with legislators to either remove public sector labor disputes from the bill or allow the Employment Security Department to consider court orders much earlier in the legal process than “final judgment” to avoid costly litigation and avoid costly illegal strike UI benefits.

Dates to remember

SB 5041 is scheduled for a hearing in the Senate Labor & Commerce Committee on January 21 at 10:30 am.