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Oregon Expands Unemployment Insurance Benefits During Labor Disputes

31 Jul

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Update Applicable to:Effective Date
All Employers in OregonJanuary 1, 2026


What happened?

On June 24, 2025, Oregon Governor Tina Kotek signed Senate Bill 916 into law, making Oregon the latest state to allow striking workers to collect unemployment insurance (UI) benefits during labor disputes.


Overview:

Senate Bill 916 (SB 916) creates a new legal framework that expands UI eligibility to workers involved in strikes and lockouts, including those in both the public and private sectors. This marks a significant shift from Oregon’s previous law, which only allowed UI benefits during employer-initiated lockouts.


Highlights of Provisions

  • Eligibility: Workers on strike or locked out are eligible for UI benefits if they meet standard requirements.
  • Waiting Period: Striking workers must wait two weeks (including the standard unpaid waiting week) before receiving benefits.
  • Benefit Cap: Benefits are limited to a maximum of 10 weeks, depending on the state’s UI tax schedule.
  • Repayment Requirement: Workers must repay benefits if they later receive back pay for the same period.
  • School Employees: School districts must deduct UI benefits from future wages if those benefits are charged to the district during a labor dispute.


Source References

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Oregon PEO services can help you navigate complex employment laws and keep your business compliant.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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