Striking Workers and Unemployment Benefits: What the Federal Memo Actually Changes
If you are currently on strike, locked out by your employer, or involved in a labor dispute and wondering whether you can file for unemployment insurance (UI), the answer depends heavily on which state you live in — and that landscape just shifted. A recent federal memo from the U.S. Department of Labor (DOL) issued guidance clarifying how state workforce agencies must process unemployment claims filed by workers in labor disputes, following two additional states changing their laws to permit those claims. This article breaks down what changed, which states are affected, and what concrete steps you can take right now if you are out of work due to a labor dispute or any other reason.
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Key Takeaways - Two more states have joined a small group that allows striking or locked-out workers to file for unemployment insurance. - A U.S. Department of Labor memo clarifies federal requirements for how states must process these claims. - Eligibility rules vary significantly by state — your state's workforce agency is the authoritative source. - Denied claims can be appealed, and free help is available at American Job Centers. - Workers out of income for any reason may also access WIOA training grants, SNAP, Medicaid, and LIHEAP while between jobs.
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Why This Federal Memo Matters
Unemployment insurance in the United States is a joint federal-state program. The federal government — primarily through the DOL's Employment and Training Administration (ETA) — sets baseline rules and provides funding, while each state designs and administers its own UI program. That means eligibility rules, weekly benefit amounts, and disqualification provisions differ from state to state.
Historically, most states have disqualified workers from receiving UI benefits if they are unemployed due to a labor dispute — meaning a strike, work stoppage, or lockout. The reasoning behind these laws has long been that UI was designed for involuntary job loss, not for workers who chose to withhold their labor as a bargaining tactic.
However, that consensus has been quietly eroding. New Jersey and New York have had labor dispute exceptions on the books for years. More recently, additional states have passed legislation extending UI access to workers in strikes or lockouts under certain conditions. The DOL memo responds directly to this trend by clarifying what federal law requires of states that choose to allow these claims — including how waiting periods must be applied, how employers must be notified, and how the appeals process must function.
For workers on the ground, this memo matters because it may affect how quickly your claim gets processed, whether your employer can successfully challenge it, and what your rights are if you are denied.
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Which States Currently Allow Striking Workers to Claim UI?
As of the date of this article, a small number of states have laws that may allow workers in labor disputes to receive unemployment benefits under specific conditions. These have historically included:
- New Jersey — Workers may be eligible after a waiting period if the labor dispute meets certain criteria.
- New York — Workers involved in a strike may file after an eight-week waiting period.
- Additional states — Two more states have recently amended their laws, though the specific provisions and waiting periods vary.
Because state laws change and the specifics matter enormously — including whether the dispute is a strike vs. a lockout, whether the worker is directly involved, and whether the employer is considered to have caused the dispute — you should contact your state's workforce agency or unemployment insurance office directly to find out the current rules in your state.
The DOL's CareerOneStop website (careeronestop.org) maintains a directory of state UI agencies with direct contact information.
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How Unemployment Insurance Works for Labor Dispute Claims
The Basic UI Framework
Unemployment insurance replaces a portion of lost wages for workers who lose their jobs through no fault of their own. Benefit amounts vary by household size and income, and are calculated based on your prior earnings — typically replacing between 40% and 60% of your previous weekly wage, up to a state-set maximum. Most states provide benefits for up to 26 weeks, though this can vary.
To be eligible for UI in most states, you generally must: - Have earned sufficient wages during a base period (usually the first four of the last five completed calendar quarters) - Be unemployed through no fault of your own (or, in labor dispute states, meet the specific labor dispute exception) - Be able to work, available for work, and actively seeking work - File a claim with your state's unemployment agency
How Labor Dispute Claims Are Different
In states that allow labor dispute claims, additional rules typically apply:
- Waiting periods: Many states impose a waiting period — sometimes as long as eight weeks — before benefits begin for labor dispute claimants.
- Employer notification: Your employer will be notified of your claim and may contest it.
- Lockout vs. strike distinction: Some states treat workers who are locked out by their employer differently than workers who chose to strike. Locked-out workers may have an easier path to benefits in some states.
- Direct involvement test: Some states only allow benefits for workers who are not directly participating in the dispute — for example, workers at a different facility who are idled because of a strike elsewhere.
The new federal memo addresses how states must handle these distinctions procedurally, which may affect how your claim is reviewed and how quickly a determination is made.
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What To Do If You Are in a Labor Dispute and Out of Work
Step 1: File a UI Claim Immediately
Even if you are unsure whether your state allows labor dispute claims, file your unemployment insurance claim as soon as possible. Most states have a waiting week before benefits begin, and delays in filing can cost you weeks of potential benefits. Filing does not guarantee you will receive benefits — it starts the process and triggers a formal eligibility determination.
You can file online through your state's workforce agency website. The DOL's CareerOneStop directory at careeronestop.org can help you find the right agency.
Step 2: Document Everything
When filing a labor dispute claim, documentation matters. Keep records of: - The date your work stoppage began - Any written communication from your employer about the dispute or your employment status - Whether you were locked out vs. choosing to strike - Your union's communications, if applicable - Any offers of work you received or declined during the dispute
Step 3: Know Your Appeal Rights
If your claim is denied, do not stop there. Every state has an appeals process for UI denials. You typically have 10 to 30 days from the date of the denial notice to file an appeal, depending on your state. Missing this deadline can forfeit your right to appeal, so act quickly.
Free legal aid organizations and union representatives may be able to help you prepare your appeal. American Job Centers — the federally funded one-stop career service centers — can also connect you with local resources.
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Other Programs That May Be Available While You Are Out of Work
Unemployment insurance is not the only support available to workers between jobs. Depending on your income and household situation, you may want to explore:
SNAP (Supplemental Nutrition Assistance Program) SNAP provides monthly food assistance to households with income at or below 130% of the Federal Poverty Level (FPL). If your household income has dropped significantly due to a work stoppage, you may be eligible. Apply through your state's SNAP agency or at benefits.gov.
Medicaid and CHIP If you lost employer-sponsored health insurance during a labor dispute, you may be eligible for Medicaid (for adults at or below approximately 138% FPL in expansion states) or the Children's Health Insurance Program (CHIP) for your children. A job loss or income reduction is a qualifying life event that allows you to apply outside of open enrollment.
LIHEAP (Low Income Home Energy Assistance Program) The Low Income Home Energy Assistance Program helps households with energy costs — heating, cooling, and utility bills. Eligibility is generally set at or below 150% FPL, though states set their own thresholds. Contact your state's LIHEAP office or apply through benefits.gov.
WIOA Training Grants The Workforce Innovation and Opportunity Act (WIOA) funds job training, career counseling, and education programs for workers who are unemployed or underemployed. If you are considering a career change or want to upgrade your skills while out of work, WIOA-funded Individual Training Accounts (ITAs) may cover tuition at approved training providers. There is no cost to access WIOA services. Visit your nearest American Job Center to get started — find locations at careeronestop.org.
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If You Are Denied UI: Your Next Move
A denial is not the end of the road. Here is what to do:
- Read the denial notice carefully. It will state the specific reason for denial and the deadline to appeal.
- File your appeal before the deadline. This is non-negotiable — missing it typically closes your case.
- Gather supporting documentation. The more specific your evidence, the stronger your appeal.
- Request a hearing. Most states allow you to present your case before an administrative law judge or hearing officer.
- Seek free help. Legal aid societies, union representatives, and American Job Center staff may be able to assist you at no cost.
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Program eligibility and availability vary by state. Not affiliated with any government agency.
Last reviewed: May 2026