The Illinois House Labor Committee advanced a bill on Mar. 23 that would allow workers on strike to receive unemployment benefits after two weeks. The proposed legislation, known as HB 2565 and sponsored by Representative Vella, aims to provide financial support for employees engaged in labor strikes.
The issue has drawn attention from small business owners, who are concerned about the potential impact of the measure. When surveyed, 87% of members of the National Federation of Independent Business (NFIB) in Illinois said they opposed extending unemployment benefits to striking workers, while another 8% were undecided.
“Small business owners already pay into the unemployment insurance system for their own employees,” said NFIB Illinois State Director Noah Finley. “This legislation would put small business owners with just a handful of employees on the hook for unemployment benefits paid out to striking workers at large corporations.”
According to information provided by NFIB, even without this legislative change, Illinois’ unemployment trust fund balance is expected to decrease this year because employer contributions are projected to fall short of what is needed for current benefit payments. This situation is partly attributed to Illinois’ relatively high unemployment rate; in December, the state had one of the highest rates both in the Midwest and nationwide.
As lawmakers continue debate over HB 2565, observers will be watching how concerns about funding and economic impact shape its progress through the legislature.
