SB 26 — AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO UNEMPLOYMENT COMPENSATION.

Summary

Under current Delaware law, if a labor dispute constitutes a lockout, employees who meet all other eligibility requirements qualify for unemployment benefits from the date they file their claim. However, if a labor dispute does not constitute a lockout, employees do not qualify for (i.e. are disqualified from receiving) unemployment benefits. This Act changes the law to allow an employee who is subject to a labor dispute, other than a lockout, to collect unemployment benefits after a 2-week waiting period, if the employee meets all the eligibility requirements for unemployment benefits, including being able and available for work and completing weekly job requirements. This Act provides that the 2-week waiting period established by this Act is waived if one or both of the following apply: (1) The labor dispute is caused by the failure or refusal of the employer to comply with an agreement or contract between the employer and the individual, including a collective bargaining agreement with a union representing the individual, or a State or federal law pertaining to hours, wages, or other conditions of work. (2) The employer hires a permanent replacement worker for the individual's position. The Department of Labor may impose a penalty on an employer who fraudulently certifies the ability of an employee to return to the employee’s prior position on conclusion of the labor dispute. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Bill Text

• Bill Text View text Current pdf

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This bill modifies the unemployment compensation law to allow benefits for individuals involved in non-lockout labor disputes after a two-week waiting period and establishes conditions under which this waiting period can be waived.

• § 3314

  For any Except as provided by paragraph (4)b. of this section, before the third week with respect to which the Department finds that the individual’s total or partial unemployment is due to a stoppage of work which exists because of a labor dispute (other than a lockout) dispute, other than a lockout, at the factory, establishment establishment, or other premises at which the individual is or was last employed. → An individual shall be disqualified for benefits: (4) For any except as provided by paragraph (4)b. of this section, before the third week with respect to which the Department finds that the individual’s total or partial unemployment is due to a stoppage of work which exists because of a labor dispute, other than a lockout, at the factory, establishment, or other premises at which the individual is or was last employed.

  The amendment clarifies that benefits may not be disqualified earlier than the third week for labor disputes excluding lockouts.

• § 3314

  be disqualified for benefits before the third week with respect to which the Department finds that the individual’s total or partial unemployment is due to a stoppage of work which exists because of a labor dispute (other than a lockout) → collect unemployment benefits after a 2-week waiting period, if the employee meets all the eligibility requirements for unemployment benefits

  This change allows employees affected by non-lockout labor disputes to receive unemployment benefits after a two-week waiting period.

• § 3314

  An individual is not disqualified for benefits before the third week with respect to which the Department finds that the individual’s total or partial unemployment is due to a stoppage of work which exists because of a labor dispute, other than a lockout, if 1 or more of the following applies: → The 2-week waiting period established by this Act is waived if one or both of the following apply:

  This adjustment provides conditions under which the waiting period for unemployment benefits may be waived.

• § 3314

  2. The employer hires a permanent replacement worker for the individual’s position. → 2. The employer hires a permanent replacement worker for the individual's position. A replacement worker is presumed to be permanent unless the employer certifies in writing that the individual will be able to return to the individual’s prior position on conclusion of the labor dispute, if the labor dispute terminates before the conclusion of the individual’s eligibility for benefits under this chapter.

  This addition clarifies the conditions regarding permanent replacement workers and their impact on unemployment benefits.

• § 3314

  the employer does not permit the individual to return to the individual’s prior position, the individual is qualified for, and may recover, benefits lost during the period the individual was disqualified for benefits, and the Department may impose a penalty on the employer of up to $750 per employee per week of benefits lost. → If, after the certification under paragraph (4)b.2.A. of this section, the employer does not permit the individual to return to the individual’s prior position,

  The bill further stipulates the recovery of lost unemployment benefits under specified conditions.

• § 3314

  The Department shall deposit the penalty collected under this paragraph (4)b.2.B. into the Special Administration Fund established under § 3166 of this title. → The Department may impose a penalty on an employer of up to $750 per employee per week of benefits lost.

  This grants the Department authority to impose penalties on employers for certain acts, ensuring compliance with unemployment compensation rules.

Action History

1. May 05, 2026

   Passed By House. Votes: 26 YES 9 NO 6 ABSENT

2. March 10, 2026

   Reported Out of Committee (Labor) in House with 2 Favorable, 6 On Its Merits

3. January 14, 2026

   Assigned to Labor Committee in House

4. January 13, 2026

   Passed By Senate. Votes: 16 YES 5 NO

5. April 09, 2025

   Reported Out of Committee (Labor) in Senate with 5 Favorable

6. January 03, 2025

   Introduced and Assigned to Labor Committee in Senate

Sponsors

• David L. Wilson · Primary
• Edward S. Osienski · Primary
• Spiros Mantzavinos · Primary
• John "Jack" Walsh · Primary
• Claire Snyder-Hall · Primary
• Bryant L. Richardson · Primary
• Darius J. Brown · Primary

Votes

Subjects