New Law Protects Health Coverage During Strikes and Lockouts, Slapping Employers with up to $150K Fines

When a labor dispute turns into a strike or an employer-initiated lockout, one of the most stressful things for workers is the threat of losing health insurance. That’s a massive piece of leverage employers often use in negotiations. The Striking and Locked Out Workers Healthcare Protection Act aims to take that leverage off the table completely.

This bill explicitly states that if you are involved in a lawful strike, or if your employer locks you out specifically to gain an advantage in bargaining, your employer cannot terminate or alter your existing group health plan coverage. This protection is immediate and lasts for the duration of the labor action. Essentially, it ensures that your right to healthcare isn't a bargaining chip when the negotiations get tough.

Taking Healthcare Off the Bargaining Table

For most people, losing health insurance means facing a crisis, especially if you have chronic conditions or kids who need regular care. This legislation directly addresses that vulnerability. If you’re a machinist on strike, or an engineer subject to a lockout, your employer can no longer send a letter saying your family’s insurance ends next week. The bill uses the established definition of "group health plan" from ERISA, meaning it covers the standard employer-sponsored health insurance most people rely on.

This is a major shift in the dynamics of labor disputes. Before this, employers could legally terminate coverage, forcing workers to scramble for COBRA coverage (which is expensive) or rely on union funds. Now, the employer is required to maintain the status quo on health benefits during the dispute, removing a critical pressure point from the employer's side.

The Price of Playing Games: Massive New Penalties

To make sure employers actually follow this rule, the bill introduces serious financial consequences. It amends the National Labor Relations Act to establish steep civil penalties for violations, which are handled by the National Labor Relations Board (NLRB).

If an employer illegally messes with health coverage during a lockout, they face a penalty of up to $75,000 per violation. If that violation involves firing someone or causes other serious financial hardship, and the employer has a similar violation in the last five years, that fine can double up to $150,000.

For violations during a lawful strike, the penalties are slightly lower but still substantial: up to $50,000 per violation, doubling to $100,000 if the violation caused serious harm and the employer is a repeat offender within five years. These aren't minor slaps on the wrist; these are fines designed to be a significant deterrent, especially for smaller businesses, ensuring that compliance is far cheaper than the penalty.

Holding the Bosses Accountable

Perhaps the most notable enforcement mechanism is the power given to the NLRB to hold individuals personally responsible. The Board can now go after individual directors or officers if they were directly involved in the violation, knew about it and didn’t stop it, or ordered the violation to happen. This means the person making the call to cut off health insurance could face personal civil penalties, not just the corporation.

When setting these fines, the NLRB must consider several factors, including the severity of the employer's action, the harm caused to the employees, the size of the employer, and any history of prior labor law violations. This ensures that the punishment fits the crime and that large corporations with deep pockets don't just treat the fine as a cost of doing business.