Washington became one of only three states in the country to provide unemployment benefits for striking workers after Gov. Bob Ferguson signed a bill into law Monday.
The new law, which goes into effect Jan. 1, provides up to six weeks of benefits for striking workers, after a waiting period of up to 21 days after a strike or lockout period begins. The law sunsets in 2035.
Notably one of the most contentious bills this session, it was opposed by businesses and Republican lawmakers in the state due to concerns about potential higher costs for employers and workers, as well as financial hits to the state Unemployment Insurance Trust Fund. In the end, labor advocates in one of the most heavily unionized states in the nation scored the win after multiple rounds of negotiations.
"Allowing striking workers to access unemployment insurance benefits creates a more level playing field for workers to have the resources they need to effectively bargain for better working conditions," Ferguson said during the bill signing.
Washington State Labor Council President April Sims said the bill would disincentivize "bad faith behavior" from employers and encourage them to engage with striking workers, leading to shorter strikes.
On a national level, Sen. Marcus Riccelli, D-Spokane, sponsor of the bill, said the new law is "cementing" Washington's tradition of protecting union workers.
"I feel like this is leveling the playing field at a time when we have an administration at the national level that's looking to sweep the legs of working families across our country," said Riccelli. Riccelli also said in the bigger picture he thinks that means more states will follow suit.
New York and New Jersey are the only other states that allow unemployment benefits for striking workers, according to a report by the Economic Policy Institute, while several other states such as Connecticut, Hawaii and Oregon have recently considered similar laws. New York initially had a seven week waiting period to access benefits but shortened that to 14 days in 2020. New Jersey cut its 30-day waiting period in half last year.
Washington ranks 5th nationally with 16% of its workers in a union, just behind Hawaii, New York, Alaska and New Jersey, according to the U.S. Department of Labor and Statistics. The national unionization rate is 9%.
Groups such as the Association of Washington Businesses argued that the unemployment trust fund could take a 25% hit when the new law goes into effect. Republican lawmakers fought hard against the bill this session, claiming that it would incentivize workers to go on strike and that it would make business owners more reluctant to want to keep doing business in the state.
Several business-friendly Democrats in the Legislature, in contrast to progressive and labor Democrats, joined Republicans in voting against the bill, including Rep. Adam Bernbaum, D-Port Angeles.
He said he voted against the measure after talking to business members in his community who were concerned about the stability of the Unemployment Insurance Trust Fund, and how the bill could "incentivize a negative change in labor relations."
He felt like lawmakers in Olympia were already putting pressure on business owners this session, such as increasing taxes on certain businesses.
"There's an element of trying to make a positive acknowlegement to those community members that I hear their concerns and that we want to make sure this is a place where business feels welcome," Bernbaum added.
Riccelli noted that even though Washington has a high percentage of unionized employees, a majority of employees are not unionized. The law does not pay out full wages to workers during a strike, amounting to an approximate weekly payment of $757 in 2026, and $780 in 2027, according to the bill's fiscal note.
A forecast published by the Employment Security Department in March showed that as of April 1, about $3.5 billion was in the UI trust fund, with payments to unemployed workers expected to be about $1.7 billion in 2025 and $1.9 billion in 2026. In Washington, workers are entitled for up to 26 weeks of unemployment pay after losing work.
The Employment Security Department (ESD) estimates the financial cost of a strike or lockout to be $1.4 million at the very high end in months during which a qualifying strike would occur, Riccelli added. ESD estimates that the total cost for striking workers benefits in 2026 would equal about $2.8 million, and $5.8 million in 2027. Employers would be charged over four years for the benefits paid to striking workers through the "experience tax."
The bill initially allowed up to 12 weeks of benefits, but that was chopped down to six weeks. The Senate also adopted a Republican-backed amendment on the bill that requires the ESD to track the prevalence and impact of strikes on the fund.
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