The unemployment insurance (UI) system, administered by the Employment Security Department (ESD), provides partial wage replacement benefits for unemployed workers.  An individual is eligible to receive benefits if he or she:  worked at least 680 hours in covered employment in his or her base year, was separated from employment through no fault of his or her own or quit work for good cause, is able to work, and is actively searching for work.  Generally, an eligible workers can receive up to 26 weeks of benefits in a benefit year.  An eligible worker must complete a one-week waiting period before receiving benefits.  The weekly benefit amount is calculated based on the eligible worker's earnings in the prior base year and then adjusted based on a statutory formula.  The current maximum weekly benefit amount is $1,152.

Unemployment Insurance Benefits for Striking Workers.

In 2025, the state passed legislation allowing for eligible workers to receive benefits when unemployed due to a labor strike.  The legislation is temporary, allowing benefits from January 1, 2026, through December 31, 2035.

Additional limits apply to benefits for eligible workers who are unemployed due to a labor strike.  A worker is disqualified until the second Sunday after a strike begins, which is followed by the one-week waiting period.  An eligible worker may receive only six weeks of benefits.  The ESD must issue an overpayment assessment for recovery of benefits if either the worker subsequently receives retroactive wages for any week for which he or she received benefits or a final judgment finds that a strike is prohibited by state or federal law.  For any overpayment assessment, the ESD must impose interest of 1 percent per month on the outstanding balance if the individual fails to repay the overpayment and fails to arrange a repayment plan.

Payroll Taxes.

Most employers are contribution-paying employers, referred to as taxable employers.  For this category, benefits are paid from the UI Trust Fund, which is funded through employer contributions, referred to as payroll taxes.  An employer's tax rate includes an experience-rate factor (experience rating), a social-cost factor (social tax), and under certain conditions, a solvency surcharge.  In most circumstances, a person's benefits are proportionally charged to the experience rating of all his or her base year employers according to the amount of wages paid to the person by each employer in the person's base year compared to the wages paid by all employers.  However, benefits paid to striking workers are charged only to the experience rating of the separating employer.  The more benefits charged the employer, the higher the employer's experience rate class and tax liability.  In contrast, state and local governments, federally recognized tribes, and some nonprofit organizations are eligible to become reimbursable employers.  For this category, the employer reimburses the ESD for benefits actually paid to separated employees, instead of paying payroll taxes.

When a worker applies for benefits due to a labor strike, the ESD must notify the worker of the potential for an overpayment assessment resulting from the receipt of retroactive wages.  The ESD may provide notice through an acknowledgment box in the online application process, a letter, or another reasonable method.