SHIELD Act

The SHIELD Act would tighten eligibility rules for regular unemployment benefits for weeks in which a person is unemployed due to a labor dispute. Specifically, it adds a rule that a worker cannot receive regular unemployment benefits for weeks when their unemployment results from participating in, financially supporting, or having a direct interest in a strike or labor dispute (this does not apply to employer-initiated lockouts). The bill also repeals a federal unemployment tax credit provision (FUTA) and delays the effective date of these changes by two years, though states can choose to implement the changes earlier. Overall, the bill clarifies and narrows who can receive regular unemployment benefits during labor disputes, and it adjusts federal employer tax rules accordingly.