Senate approves bill allowing some workers in labor disputes to collect unemployment benefits

The Delaware Senate passed Senate Bill 26 on Wednesday to expand unemployment insurance eligibility for workers engaged in certain labor disputes.

Sponsor Senator Brown said the bill addresses a gap that can allow employers to undercut collective bargaining by denying benefits to workers who stop work during disputes that are not formal lockouts. Under the bill, employees involved in labor disputes other than lockouts could collect UI after a two-week waiting period if they meet eligibility rules, including ability and availability for work and required job searches. The waiting period may be waived if the employer failed to comply with an agreement or if the employer hired a permanent replacement.

Opponents on the floor, including Senator Hocker and others, raised concerns that the change could result in higher unemployment insurance rates for employers because benefit ratio calculations may increase employer premiums. Republican caucus attorney Anthony Delcolo testified that changes to how benefits are counted could affect an employer’s quarterly payroll tax rate. James Billups (mentioned earlier in the transcript) and, at the podium, James Phillips (identified by the witness when speaking) from the Department of Unemployment Insurance explained operational details: the first two weeks provide a reconciliation period, benefits awarded beyond that may be repaid if the employer reimburses the state, and adjudication of individual cases would determine entitlement.

On roll call, the Senate recorded 16 yes and 5 no; Senate Bill 26 was declared passed.

The bill alters eligibility rules for UI in labor-dispute contexts; sponsors said it is intended to strengthen collective bargaining protections while opponents warned of potential employer cost impacts and administrative complexity. The department said determinations will be adjudicated on a case-by-case basis.