Striking and Locked Out Workers Healthcare Protection Act
The Striking and Locked Out Workers Healthcare Protection Act would shield an employee’s health coverage under a group health plan from being terminated or altered while the employer is engaged in a lock-out or while the employee is engaged in a lawful strike. It would amend the National Labor Relations Act (NLRA) to add explicit job-protected health coverage protections during labor disputes and to define “group health plan” in line with ERISA. The bill also creates civil penalties for violations, with higher penalties for actions that cause discharge or other serious harm and for repeat offenses, and it can extend liability to directors or officers who directed or permitted the violation. The aim is to ensure workers maintain health coverage during labor disputes and to encourage compliance with these protections by employers.
Key Points
- 1Prohibition on changing or terminating group health plan coverage during a lock-out or lawful strike; coverage protections would apply during the period of labor dispute actions.
- 2Expansion of NLRA protections to cover group health plan coverage, by adding new subsections to 29 U.S.C. 158(a) for lock-outs and for strikes, and by defining “group health plan” consistent with ERISA.
- 3New civil penalties for unfair labor practices related to health plan coverage during lock-outs and strikes, including up to $75,000 per lock-out violation and up to $50,000 per strike violation, with doubling to $150,000 and $100,000 respectively for harm such as discharge or serious economic harm and when the employer has a prior five-year history of violations.
- 4Potential director/officer liability, allowing penalties to be assessed against individuals who directed or failed to prevent the violations.
- 5Penalty considerations to guide amount (gravity of actions, employer size, prior penalties, and public interest), with penalties in addition to any other remedies ordered by the National Labor Relations Board (NLRB).