The SHIELD Act clarifies eligibility rules for unemployment benefits when workers lose jobs due to labor disputes. Specifically, the bill would make individuals ineligible for regular unemployment compensation if they are unemployed because of a strike or other labor dispute (excluding lockouts) in which they are participating, providing financial support to, or have a direct interest. The legislation amends the Social Security Act and the Federal Unemployment Tax Act to establish this requirement. The changes would take effect two years after the bill becomes law, though states could adopt these rules earlier if they choose. This affects workers involved in strikes or labor disputes who currently may qualify for unemployment benefits during work stoppages.
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