US DOL – CENTRALIZED UI PILOT PROGRAM UPDATE
In October, Thomas & Company reported on the Unemployment Centralization Pilot Program, announced by the US Department of Labor (US DOL). According to the US DOL, the intention is not to pilot initial claims intake or processing but rather serve as a starting point for initial claims by providing ID verification and work authorization services. While participating states have not yet been identified, the pilot is anticipated to start with a very small number of participants, ranging from 2-5 states.
In a mid-December letter addressed to Secretary of Labor Lori Chavez-DeRemer, Senators Elizabeth Warren and Bernie Sanders requested additional information about the pilot program. Thomas & Company will continue to monitor and communicate any developments and next steps associated with this change.
Effective January 1, 2026, Oregon and Washington join New Jersey and New York as the only states that allow unemployment benefits to striking workers under specific conditions.
OREGON
Beginning the first full week of January, January 4-10, 2026, workers may now be eligible for unemployment benefits if involved in a lockout or strike. As with most unemployment claims, claimants must meet strict eligibility requirements in order to receive benefits, including being able, available, and actively seeking work. Furthermore, all striking workers must serve an unpaid “strike week” before becoming eligible for benefits. This “strike week” is served prior, and in addition to, to the required waiting week.
The state differentiates between lockouts—when an employer refuses to allow an employee(s) to work because of a dispute and strikes—when a group of employees refuse to perform services for an employer. If an individual is out of work due to a lockout or a strike in which they are not participating, they will not be subject to the additional unpaid strike week.
Striking workers are eligible for a maximum of 10 weeks of benefits.
Additional details on unemployment benefits for striking workers in Oregon can be found on the state website.
WASHINGTON
Effective January 1, 2026, individuals involved in a labor dispute, like a strike or lockout, may now be eligible to receive unemployment benefits. Employers will be required to complete an Employer Labor Dispute questionnaire.
Benefits will be allowed beginning the second Sunday after a strike’s start date. Qualified claimants must serve a one-week unpaid waiting period prior to receiving benefits. As with most unemployment claims, claimants must meet strict eligibility requirements in order to receive benefits, including being able and available to work and reporting any wages earned while on strike (but not strike pay from their union). They do not, however, need to complete weekly job search requirements.
Striking workers are eligible for a maximum of 6 weeks of benefits, while workers impacted by a lockout may be eligible for benefits for the duration of the lockout. Any week in which an individual collects benefits will be counted against their total benefit eligibility.
Employers with workers who receive unemployment benefits as a result of a labor dispute will be responsible for 100% of benefits.
Additional details on unemployment benefits for striking workers in Washington can be found on the state website.
