Sponsors (15)
The bill strengthens protections for striking or locked-out workers by preserving group health coverage and increasing enforcement power, at the cost of higher employer and plan expenses, greater legal and administrative burdens, and incentives that could affect benefit design or access.
Union members and employees who are on strike or locked out are more likely to keep their employer-sponsored group health coverage because the bill prohibits employers from altering group health plans during labor disputes and creates penalties for cuts.
Union members and employees gain stronger bargaining power and greater protection from employer coercion because the bill prevents benefit-cutting as a negotiating tactic and imposes financial deterrents for unlawful coverage changes.
Employers, the NLRB, and other stakeholders get clearer legal guidance because the bill adopts ERISA's definition of 'group health plan,' reducing ambiguity about what counts as an improper alteration of coverage.
Employers and plan sponsors (particularly small businesses) may face higher short-term costs to maintain benefits during strikes or lockouts, costs that could be passed on to employees, customers, or owners.
Maintaining coverage during prolonged disputes could strain plan finances or increase risk exposure, potentially leading to higher premiums or reduced benefits for all enrollees down the line.
The bill may increase legal disputes and compliance costs because employers and the NLRB will litigate over what counts as an improper 'alteration' and how penalties should be set, raising administrative burdens and case time.
Based on analysis of 3 sections of legislative text.
Prohibits employers from terminating or altering group health plan coverage during lockouts or lawful strikes and creates civil fines for violations.
Official title: Prohibit an employer from terminating the coverage of an employee under a group health plan while the employer is engaged in a lock-out or while the employee is engaged in a lawful strike, and for other purposes.
Introduced June 5, 2025 by Tammy Baldwin · Last progress June 5, 2025
Makes it an unfair labor practice for employers to end or change employees' group health plan coverage when the employer is locking out workers or when employees are engaged in a lawful strike, and creates civil money penalties for such violations. It adopts the ERISA definition of “group health plan” and gives the National Labor Relations Board authority to assess substantial fines (with higher amounts for repeat or especially harmful violations) and to consider penalties against corporate officers where appropriate.