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Striking Workers Could Be Eligible for Unemployment Benefits
A bill to provide unemployment benefits to workers when striking was heard in both House and Senate committees this week.
A bill heard in the House and Senate on March 13 would provide striking workers with unemployment benefits. HF 3446 (Rep. Kaela Berg, DFL-Burnsville) was heard in the House Workforce Development Finance and Policy Committee and SF 3588 (Sen. Zaynab Mohamed, DFL-Minneapolis) was heard in the Senate Jobs and Economic Development Committee. Under current law, workers who leave employment by participating in a strike are ineligible for unemployment benefits for the duration of the strike.
The bills, as originally drafted, would have authorized unemployment benefits in the event that the employer hired or used replacement workers to fill the role of the striking individual during the strike. An amendment was adopted during both the House and Senate hearings that would amend Minnesota, Statutes, section 268.085, subdivision 13b related to a labor dispute to provide that an applicant who has stopped working because of a labor dispute is not ineligible for unemployment benefits, regardless of if an employer hired or used replacement workers to fill the job duty.
Impact on cities
Under this bill, unemployment benefits would be paid through the Minnesota Department of Employment and Economic Development. Reimbursement-based employers for unemployment insurance, including all cities, would be liable for the entire benefit cost for the striking employee or employees. The League provided a letter in partnership with county associations noting concerns of how the bill would impact public employers.
Read the letter from LMC, AMC, and MICA (pdf).
The League also provided testimony at the committee hearings to share concerns regarding the bill.
- View a video of the House Workforce Development Finance and Policy Committee hearing.
- View a video of the Senate Jobs and Economic Development Committee hearing (SF 3588 beginning at 1:06:00).
Next steps for the bill
HF 3446 was passed and re-referred to the House Ways and Means Committee. SF 3588 was laid over for possible inclusion in an omnibus bill. The League will continue to monitor the bill as it advances and communicate how the bill would impact cities.