H.R. 4424: Securing Help for Involuntary Employment Loss and Displacement Act

This bill, titled the Securing Help for Involuntary Employment Loss and Displacement Act, aims to modify existing unemployment compensation regulations in the United States, specifically concerning situations where individuals lose their jobs due to labor disputes, such as strikes.

Key Provisions

• Eligibility for Unemployment Benefits: The bill adds a specific condition to the eligibility requirements for receiving unemployment benefits. Under the proposed changes, individuals who are unemployed as a direct result of engaging in a strike or participating in a labor dispute will not be eligible for regular unemployment compensation. This condition applies to individuals who are:
  • actively participating in the strike or labor dispute,
  • providing financial support to those involved, or
  • having a direct interest in the labor dispute.
• Amendment to Federal Unemployment Tax Act: The bill seeks to repeal a specific provision within the Federal Unemployment Tax Act. This repeal is meant to align federal regulations with the new eligibility conditions being introduced by this bill.
• Effective Date: The changes proposed in this bill would take effect two years after the bill is enacted. However, states are allowed to make amendments to their laws before the end of this two-year period.

Implications

The intent behind this legislation is to clarify and potentially tighten the eligibility criteria for receiving unemployment benefits in cases involving labor disputes. This could impact how states administer unemployment benefits and the conditions under which individuals can claim them. Organizations and individuals involved in labor relations may need to closely examine these changes, as they could have significant implications for employees and employers during times of labor disputes.

Relevant Companies

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