Job Training & Benefits

Striking Workers and Unemployment Benefits: What the New Federal Memo Means for You

Two more states now allow workers in labor disputes to claim unemployment insurance — and a federal clarification is reshaping how those claims get processed nationwide.

April 4, 2026·By Keisha Washington·✓ Reviewed April 2026

Key Takeaways

✓A new federal memo clarifies how states must handle unemployment insurance (UI) claims from workers involved in labor disputes, including strikes and lockouts.
✓At least two additional states have recently changed their laws to allow striking workers to collect UI benefits during a work stoppage — joining a small but growing group of states with similar rules.
✓Eligibility for UI during a labor dispute varies significantly by state; most states still disqualify workers who are on strike, but lockout situations are treated differently almost everywhere.
✓If you are in a labor dispute and your UI claim is denied, you have the right to appeal — and understanding the federal framework may help you build a stronger case.
✓Workers facing job loss or extended work stoppages may also be eligible for SNAP, Medicaid, LIHEAP, and WIOA-funded training programs regardless of the reason for job separation.

Informational guide only. Not affiliated with any government agency. Program details vary by state and change frequently. Verify eligibility directly with your local agency or at Benefits.gov.

If you're a worker caught in a strike or lockout and wondering whether unemployment benefits during a labor dispute may be available to you, the answer just got more complicated — and more hopeful — depending on where you live. A recent federal memo from the U.S. Department of Labor (DOL) has clarified the rules states must follow when processing unemployment insurance (UI) claims tied to labor disputes, following two more states updating their laws to extend UI eligibility to striking workers.

This is a fast-moving area of workforce policy. Here's what you need to know right now.

What the Federal Memo Actually Says

The U.S. Department of Labor oversees the federal-state unemployment insurance system but does not administer UI directly — each state runs its own program under federal guidelines. The recent DOL memo does not create a new national right to UI for striking workers. Instead, it clarifies the procedural requirements states must follow when a worker in a labor dispute files a claim, particularly around how states define "labor dispute," how they determine whether a worker is "directly involved," and what documentation is required before a claim can be denied or approved.

The memo is significant because it signals federal scrutiny of how states are applying these rules — and it gives workers and labor advocates a clearer framework for challenging improper denials.

Which States Now Allow Striking Workers to Claim UI?

Historically, the vast majority of states have disqualified workers from receiving unemployment insurance if they are on strike. The legal logic has been that a strike is a voluntary work stoppage. However, that landscape is shifting.

States With Expanded Labor Dispute UI Eligibility

As of early 2026, a small but growing number of states have passed legislation allowing striking workers to collect UI benefits after a waiting period. New York and New Jersey are among the states that have moved in this direction in recent years. The two states referenced in the federal memo's context represent the latest additions to this group.

Key distinctions that affect eligibility in most states include:

Lockouts vs. strikes: In nearly every state, workers who are locked out by their employer — rather than choosing to strike — are eligible for UI. If your employer shut down operations and refused to let you work, that is typically treated differently than a voluntary strike.
Waiting periods: Even in states that allow striking workers to claim UI, there is usually a waiting period of several weeks before benefits begin.
"Directly involved" tests: Some states only disqualify workers who are directly participating in the labor dispute, meaning workers at a different facility or in a different bargaining unit may still be eligible even during a company-wide strike.

How to File a UI Claim During a Labor Dispute

If you are currently in a work stoppage — whether a strike or a lockout — here are the steps to take:

Step 1: File Immediately, Even If You Expect a Denial

Do not wait to see how the dispute resolves. File your unemployment insurance claim with your state workforce agency as soon as your work stoppage begins. In most states, benefits cannot be paid retroactively for weeks you did not claim. Filing preserves your place in the process.

Step 2: Be Accurate About Your Reason for Separation

When asked why you are no longer working, describe the situation accurately: "labor dispute — strike" or "labor dispute — lockout." Do not characterize it as a layoff if it is not. Misrepresentation can result in overpayment penalties and disqualification.

Step 3: Gather Your Documentation

You will likely need: - Your most recent employer's name, address, and your dates of employment - Your Social Security number - Your wage history for the past 12–18 months - Any written notice from your employer about the work stoppage - Union membership information, if applicable

Step 4: Respond to All Agency Requests Promptly

During a labor dispute claim, your state agency may contact your employer and your union for information. Respond to any requests for additional documentation within the stated deadline. Missing a deadline is one of the most common reasons claims are delayed or denied.

Step 5: Appeal a Denial

If your claim is denied, you have the right to appeal. The denial notice will include a deadline — typically 10 to 30 days depending on your state — and instructions for requesting a hearing. At the hearing, you can present evidence that you were locked out rather than on strike, that you were not "directly involved" in the dispute, or that your state's law has changed and the denial was based on outdated criteria. Many workers successfully overturn UI denials on appeal.

Benefit Amounts and Duration

UI benefit amounts vary by household size and income and are calculated based on your prior wages, subject to your state's minimum and maximum weekly benefit amounts. Most states replace roughly 40–50% of prior wages up to a weekly cap. Duration is typically 12–26 weeks depending on your state's rules and the overall unemployment rate.

Other Programs That May Help During a Work Stoppage

UI is not the only program that may be available to workers in a labor dispute. Depending on your household income — generally measured as a percentage of the Federal Poverty Level (FPL) — you may also be eligible for:

Supplemental Nutrition Assistance Program (SNAP): Households at or below 130% FPL may be eligible for monthly food assistance through SNAP, administered by the USDA Food and Nutrition Service.
Medicaid: If your household income falls below 138% FPL (in states that expanded Medicaid), you may be eligible for low- or no-cost health coverage through your state Medicaid agency.
Low Income Home Energy Assistance Program (LIHEAP): If you are struggling to pay heating or cooling bills during a work stoppage, LIHEAP — administered through the U.S. Department of Health and Human Services — may help cover energy costs.
WIOA-Funded Training: If the labor dispute results in a permanent job loss or you decide to change careers, the Workforce Innovation and Opportunity Act (WIOA) funds training grants and career services through your local American Job Center. These services are free and available to workers who are unemployed or underemployed.

To find your nearest American Job Center, visit careeronestop.org or call 1-877-872-5627.

What to Do Right Now

If you are in a labor dispute today: 1. File your UI claim with your state workforce agency immediately. 2. Contact your union representative (if applicable) for documentation support. 3. Screen yourself for SNAP, Medicaid, and LIHEAP using Benefits.gov. 4. Visit your local American Job Center to understand what WIOA services may be available to you.

Program eligibility and availability vary by state. Not affiliated with any government agency.

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Last reviewed: April 2026

Sources & Further Reading

Frequently Asked Questions

Can striking workers collect unemployment benefits?

It depends on your state. Most states historically disqualify workers who are on strike, but a growing number — including New York and New Jersey — have changed their laws to allow UI claims after a waiting period. Workers who are locked out by their employer, rather than choosing to strike, are eligible for UI in nearly every state. Check with your state workforce agency for current rules.

What is the difference between a strike and a lockout for unemployment purposes?

A strike is a voluntary work stoppage initiated by workers or a union. A lockout is an employer-initiated work stoppage where the employer refuses to allow employees to work. For UI purposes, lockouts are treated more favorably in almost every state — workers locked out by their employer are generally eligible for unemployment benefits, while striking workers may be disqualified depending on state law.

What should I do if my unemployment claim is denied because of a labor dispute?

File an appeal immediately. Your denial notice will include a deadline — typically 10 to 30 days — and instructions for requesting a hearing. At the hearing, you can present evidence about the nature of the work stoppage, whether you were directly involved, and whether your state's law has recently changed. Many denials are successfully overturned on appeal, especially in states that have recently expanded UI eligibility.

Does the new federal memo give striking workers a right to unemployment benefits nationwide?

No. The U.S. Department of Labor memo clarifies procedural requirements for how states must process labor dispute UI claims — it does not create a new federal right to benefits for striking workers. UI is administered at the state level, and eligibility rules vary significantly. The memo may help workers challenge improper denials by establishing clearer federal standards for how claims must be evaluated.

What other assistance programs may be available to workers during a strike or lockout?

Workers experiencing income loss during a labor dispute may be eligible for SNAP food assistance (for households at or below 130% FPL), Medicaid health coverage (up to 138% FPL in expansion states), and LIHEAP energy assistance. WIOA-funded career services and training grants through American Job Centers are also available to unemployed workers at no cost. Eligibility varies by state and household circumstances.

About the Author

Written by the Hardship Authority editorial team.

Disclaimer: This article is for informational purposes only. It does not constitute legal, financial, or benefits advice. Program eligibility and availability vary by state. Not affiliated with any government agency. Verify information with official sources including Benefits.gov, USDA, HUD, and your state program office.

unemployment insurancelabor disputestriking workerslockout benefitsUI eligibilityworkforce developmentWIOAAmerican Job CenterSNAPMedicaid

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