The Oregon House Committee on Labor and Workplace Standards convened on April 28, 2025, to discuss significant changes proposed in Senate Bill 916A, which aims to modify unemployment insurance (UI) benefits for striking workers. The bill is set to take effect on January 1, 2026, and its implementation will involve various preparatory actions, including training and updates to communication materials.

One of the key points discussed was the impact of strikes on unemployment insurance tax rates for employers. Under the new legislation, if an employee quits for a good cause not attributable to the employer, it could affect the employer's UI tax rate. The committee explained that the statutory formula for determining tax rates considers each employer's experience ratings, which are influenced by the unemployment claims made by their former employees.

During a recession, for instance, all employers may see an increase in their experience ratings, but their tax rates would remain unchanged unless the overall claims shift the tax schedule. The bill specifies that employers whose former workers receive benefits while on strike will see their experience ratings impacted, but only those with significant strikes could see a change in their individual tax rates.

The committee also outlined the timeline for benefits under the new bill. Striking workers will be disqualified from receiving benefits during the first week of their strike. They will serve a regular waiting week in the second week, after which they can begin receiving benefits starting in the third week. However, eligibility for benefits is contingent upon meeting all requirements, including having sufficient earnings in the base year and not encountering disqualifying events.

Additionally, the bill clarifies that if striking workers receive back pay after their strike, this will be treated as a non-waivable overpayment, meaning they will not be able to retain those benefits.

The discussions highlighted the complexities of the proposed changes and their potential implications for both workers and employers in Oregon. The committee's focus on these issues underscores the ongoing efforts to balance the needs of workers with the economic realities faced by employers in the state.