Oregon made labor history in 2025 when Governor Tina Kotek signed Senate Bill 916, making Oregon the first state to extend unemployment insurance (UI) benefits to both public and private sector workers participating in strikes. We previewed this development last year, and the law took effect January 1, 2026. SB 916 is already generating headlines as employers face strikes and the federal government weighs in.

• Oregon’s Senate Bill (SB) 916 extends unemployment insurance benefits to both public and private sector workers participating in strikes.
• The U.S. Department of Labor has raised concerns about the SB 916, warning that striking workers must still demonstrate they are actively seeking work to receive benefits.
• Employers may want to review collective bargaining agreements and prepare for longer and more frequent work stoppages, as the law shifts the balance of power in labor disputes while raising questions about its long-term impact on Oregon’s business climate.

What the Law Does

SB 916 allows striking workers to be eligible for up to ten weeks of unemployment benefits during a strike. Striking employees must wait two weeks before receiving UI benefits—i.e., they must wait one week before becoming eligible for benefits (referred to as an “unpaid strike week” on the Oregon Employment Department website, in addition to the existing one-week waiting period required for all claimants before UI benefits can be paid.

The law requires UI benefits to be paid back if the...

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