SHIELD Act

This bill changes who can get unemployment benefits during strikes and labor disputes. It says that a person cannot get regular unemployment pay for any week they are out of work because of a strike or other labor dispute—unless it’s a lockout by the employer. This applies if the person is taking part in the dispute, giving money to support it, or has a direct interest in it.

It also removes a related rule in the federal tax code to match this change. The new rules start two years after the bill becomes law, but states can update their laws sooner if they want.

Key points:

• Who is affected: Workers involved in strikes or other labor disputes; state unemployment offices.
• What changes: No unemployment benefits during weeks you’re out of work due to a strike or labor dispute you’re involved in or support; lockouts are not included. A matching federal tax code paragraph is repealed.
• When: Takes effect two years after it becomes law; states may act sooner.