Sponsors (15)
The bill secures health coverage and adds strong enforcement for workers during strikes and lockouts, trading off higher costs, liability, and administrative burdens for employers that could prompt benefit changes or labor-market responses.
Union and nonunion employees who are lawfully striking or locked out retain their employer-provided group health coverage, preserving continuity of care and preventing sudden loss of benefits.
Employers face stronger enforcement: monetary penalties for violations, explicit additional remedies (back pay, reinstatement, injunctions), and potential director/officer liability — increasing corporate accountability and deterrence against cutting coverage.
Clarifies that 'group health plan' uses the ERISA definition, reducing legal ambiguity for employers, unions, and plans about which plans are covered.
Small and other employers may face higher costs to maintain health coverage during strikes/lockouts, which could lead to higher prices, reduced hiring, or shifting costs to workers and taxpayers.
Employers may respond by altering benefit designs, carving out coverage, or increasing use of nonunion labor to manage costs or liability, undercutting union bargaining power and potentially reducing long-term worker benefits.
Increased fines and potential director/officer liability could spur defensive litigation, raise insurance and compliance costs, and discourage risk-taking or hiring by businesses.
Based on analysis of 3 sections of legislative text.
Prevents employers from ending or changing employer-sponsored group health coverage during lockouts or lawful strikes and imposes civil penalties for violations.
Introduced June 5, 2025 by Tammy Baldwin · Last progress June 5, 2025
Prohibits employers from terminating or changing an employee’s group health plan coverage while the employer is locking out employees to influence bargaining or while employees are engaged in a lawful strike, and defines “group health plan” by adopting the ERISA definition. Creates new unfair labor practice prohibitions and adds civil monetary penalties for violations, including higher penalties for repeat or aggravated offenses and the ability in appropriate cases to assess penalties against corporate officers or directors.