Workers keep health insurance during strikes and lockouts under new labor law

What it does

This bill amends the National Labor Relations Act to make it illegal for employers to cancel or alter employee health insurance coverage during a lockout or lawful strike. It adds civil penalties of up to $75,000 per violation during a lockout (doubled to $150,000 if the employer has prior violations and the breach causes serious economic harm) and up to $50,000 per violation during a strike (doubled to $100,000 under similar circumstances). Directors and officers can also be held personally liable if they directed or knowingly failed to prevent the violation.

Why we flagged it

The bill's core mechanism is a straightforward labor-law amendment: it prohibits a specific employer conduct (health coverage termination during labor disputes) and attaches civil penalties. This is a protective labor standard, not a deregulation, subsidy, or commemorative measure.

What the text implies

• Employers may respond by shifting to defined-contribution health plans or increasing employee cost-sharing before disputes occur, potentially reducing coverage quality for all workers.
• The bill does not address whether employers must continue premium payments or only maintain the plan's availability; ambiguity on cost allocation could lead to litigation.
• Personal liability for directors and officers may incentivize corporate restructuring to insulate decision-makers, reducing accountability effectiveness.
• Penalty amounts ($50K–$150K) are modest relative to large employers' budgets; deterrent effect may be limited without enforcement resources.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Workers engaged in lawful strikes or locked out by employers gain a concrete protection: they cannot lose health insurance during labor disputes, when they are most financially vulnerable and least able to replace coverage. The penalty structure creates meaningful deterrence against employer retaliation.

Named in the bill

National Labor Relations Act, National Labor Relations Board, Employee Retirement Income Security Act of 1974, employers, employees, group health plans

Where it stands

14 cosponsors: 13 Democrats, 1 Independents.

• Jun 5, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Jun 5, 2025 — Referred to Senate Committee on Health, Education, Labor, and Pensions · Congress.gov: “Read twice and referred to the Committee on Health, Education, Labor, and Pensions”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.