The US Department of Labor has issued formal guidance reaffirming federal requirements for unemployment insurance eligibility in the context of labor disputes. In a January 8 memorandum to state unemployment insurance administrators, Michelle Beebe, administrator of the Employment and Training Administration Office of Unemployment Insurance, clarified how federal law applies when states consider providing benefits to individuals engaged in a strike.
While states retain flexibility in administering their unemployment insurance programs, participation in the federal system is conditioned on compliance with core statutory requirements. Among these is the requirement that claimants be able to work, available for work, and actively seeking work for each week benefits are claimed. The Department emphasized that states may not adopt blanket exemptions from these requirements for striking workers.
The guidance explains that providing benefits to individuals who are not genuinely seeking alternative employment or who have withdrawn from the labor market may place a state out of conformity with federal law. A finding of noncompliance could jeopardize federal administrative funding for state unemployment insurance programs, as well as employer eligibility for federal unemployment tax credits.
The memorandum also addressed the limited circumstances under which union hiring hall arrangements may satisfy work search requirements. These provisions apply only when a collective bargaining agreement requires workers to seek employment exclusively through a hiring hall. The Department underscored that this exception is narrow and does not broadly apply to all union members or strike situations.
This clarification is particularly relevant as several states, including Washington and Oregon, begin implementing new laws related to unemployment benefits during strikes. Federal officials indicated they will continue to monitor state implementation to ensure alignment with federal standards.
The Department encouraged states to request technical assistance as needed and reiterated the importance of maintaining compliance to preserve the integrity and stability of the national unemployment insurance system.
