Striking workers to get unemployment under new law signed by WA Gov Bob Ferguson

Senate Bill 5041, sponsored by Sen. Marcus Riccelli (D-Spokane), allows workers who are unemployed due to labor strikes or employer lockouts to claim unemployment insurance (UI) benefits starting 15 to 21 days after a work stoppage begins. Opponents of the bill argue that this policy not only rewards disruptive strikes but also places an unfair financial burden on employers across the state.

The state’s unemployment insurance is funded through payroll taxes.

Critics have called the bill a gift to organized labor at the expense of Washington’s job creators and subsidizes strikes with taxpayer funds. They also contend that the law fundamentally alters the purpose of unemployment insurance, originally designed to support individuals laid off through no fault of their own, not those who voluntarily leave work to engage in strikes. They argue that subsidizing strikes will embolden unions to walk off the job more frequently and prolong work stoppages, knowing workers will have taxpayer-backed benefits to fall back on.

The legislation includes a “sunset clause,” requiring lawmakers to reauthorize or repeal the law in 2036. It also mandates the state Employment Security Department to issue yearly reports on the number of strikes and the costs associated with benefits paid to striking workers—a likely acknowledgement of the contentious financial impact.

Supporters, including union leaders and progressive lawmakers, argue the bill promotes fairness in collective bargaining. But critics point out that only two other states—New York and New Jersey—have enacted similar measures, and both have seen contentious legal and budgetary challenges as a result.

Some employers worry the policy will make it harder to maintain operations and retain customers during labor disputes. Others are concerned about how quickly strike-related claims could deplete the UI trust fund, especially in industries like healthcare and transportation, where work stoppages can have widespread impacts.

Ferguson, who was backed by many labor unions in his campaign for governor, claimed following the signing, “This bill levels the playing field for workers who are fighting for fair wages and working conditions. Strikes are a last resort, and while they are an important tool for workers, they can be financially debilitating. This bill ensures workers have the resources they need to effectively bargain with their employers.”

Senate Bill 5041 is set to take effect January 1, 2026.