New legislation could let California strikers qualify for unemployment benefits

(The Center Square) – Under pending legislation, strikers could qualify for California unemployment benefits after two weeks of striking. While existing law makes employees ineligible for unemployment benefits if they leave due to a strike and are ineligible until the strike is complete, this law would codify existing law that maintains benefits for employees who left work due to a lockout by the employer, and allow workers on strike to receive unemployment benefits two weeks into a strike.

State Senator Anthony Portantino (D–Glendale) gutted an existing bill on visitation rights for family members of inmates to promote this legislative action instead, as the deadline for introducing new legislation has already passed.

“SB 799 will help workers put food on their table when they need it most, in the middle of a labor negotiation,” said Portantino, who cited ongoing entertainment and hospitality strikes as inspiration for the bill.

Unemployment benefits are paid for by employers, but the government can use its power to alter unemployment benefit eligibility and duration. California’s unemployment fund is in nearly $20 billion in debt to the federal government from COVID-19 era withdrawals that included, according to some analysis, $32.6 billion in fraudulent claims. California is one of five states to have not paid back its COVID-19 unemployment claim debt.

“I won’t be supporting the bill. Unemployment is for when you lose your job,” said Senator Brian Dahle (R–Redding), who is also a business owner. “Since COVID, the fund has been overdrawn by tens of billions of dollars. This debt could go even higher and now employers could be forced to pay for someone to go on strike against them.”

Dahle also warned that the unemployment fund required to be paid by businesses could go up even further to pay for this expansion of unemployment benefits, which he says would drive even more businesses out of California.

According to an analysis last month from the nonpartisan Legislative Analyst’s Office, the California Employment Development Department’s unemployment insurance fund is “structurally insolvent.” Under federal law, when a state has outstanding federal loans, employers pay a payroll tax surcharge that increases each year until the loans are repaid. The decline in business combined with increasing withdrawals mean that that even with additional surcharge funding its debt on this matter is expected to grow to $20.3 billion by 2024. Interest on the federal loan, $300 million for fiscal year 2023-2024, is paid for by the state’s general fund. California faces a $32 billion deficit for the 2023-2024 fiscal year.

“It’s another example of unions exercising disproportionate power in California’s state legislature,” said California Policy Center co-founder Edward Ring. “Taxpayers shouldn’t have to subsidize strikes.”