Lawmakers revive proposal to extend unemployment benefits to striking workers

A proposal that failed to pass last year has returned to the legislature, reigniting debate over whether striking workers should be eligible for unemployment benefits.

Senate Bill 5041 would allow workers who go on strike to collect unemployment insurance (UI) benefits, a program that is traditionally reserved for individuals who lose their jobs through no fault of their own. The bill is being promoted as a way to support workers engaged in labor disputes but business groups and some lawmakers warn it could have unintended consequences—including increased costs for employers, potential job losses, and disruptions to the state’s unemployment system.

A vote on the senate floor is expected any minute. Contact your state senator now.

A similar bill failed to pass the legislature in 2024, in part due to concerns about how it would impact all businesses and the overall integrity of the unemployment system​. Even some Democratic lawmakers expressed hesitation, and after public opposition, the bill died​. Now it’s back.

The Washington Retail Association’s Rose Gundersen cautioned that extending unemployment benefits to striking workers could reduce the incentive for employees to negotiate in good faith, potentially prolonging labor disputes​, and tipping the scales to give unions more leverage.

It doesn’t just tip the scales against companies but also employees. Elizabeth New, of the Washington Policy Center, explained in her testimony against SB 5041, “Employers aren’t the only ones punished when they don’t give unions what they want. Strikes even bring consequences for workers. After the recent Boeing machinist strike, in part because of the strike, layoffs began.”

The negative implications of strikes will only increase if unemployment insurance is extended to striking workers. Unemployment insurance is funded through payroll taxes paid by employers. When more benefits are paid out, tax rates typically rise to replenish the fund—adding additional costs to businesses. And that additional cost will need to be made up from somewhere, either by laying off workers, reducing wages, or raising prices on consumers. Are Washingtonians prepared for that?

On top of the fiscal concerns, unemployment insurance is generally not available to workers who voluntarily leave their jobs. Why should strikes—an entirely voluntary decision—be treated any different? Providing this benefit would likely encourage more frequent and prolonged strikes, heightening the risk of disruptions to essential government services.

A vote on SB 5041 is expected in the Senate soon. As lawmakers consider the bill’s implications, Washington residents—whether business owners, workers, or consumers—must make their voices heard.

Contact your state senator now. This bill will affect us all.