UPDATE: Governor Newsom recently vetoed California Senate Bill 799, which would have provided unemployment benefits to employees who were not laid off and, instead, were choosing to go on strike.
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California’s legislature hopes to expand unemployment benefits to illegal immigrants who are unemployed. If Senate Bill 227 passes, employers may be forced to pay higher taxes to cover the increase in unemployment benefits being paid out. The new bill increases the pool of “unemployment benefits” applicants, allows undocumented employees meet a lower threshold for obtaining “unemployment benefits, and actively ignores the propensity for fraud in these instances.
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California employers may be forced to pay unemployment benefits to employees who are still employed but refuse to work because they are on strike. The California legislature is considering Senate Bill 799, which can have negative repercussions for various industries. First, it will give organized labor, an already powerful force in politics today, even more leverage and power. Second, it may cause more jobs to be left unfilled as many employees will be incentivized to strike. After all, they get paid during a strike, and they will (presumably) get paid MORE after a strike. Worst of all, the employers and employees who are not participating in the strikes are ultimately being forced to participate by paying increased taxes or receiving less in benefits.
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