SHIELD Act

This legislation, known as the Securing Help for Involuntary Employment Loss and Displacement Act (SHIELD Act), aims to clarify eligibility requirements for unemployment compensation when an individual's unemployment is a result of a labor dispute. It amends the Social Security Act to mandate that states deny regular unemployment benefits to individuals who are unemployed due to a strike or other labor dispute (excluding lockouts) in which they are actively involved, financially supportive, or have a direct interest. Furthermore, the bill repeals paragraph (5) of section 3304(a) of the Federal Unemployment Tax Act , which currently provides certain guidelines for states regarding labor dispute disqualifications. The provisions of this Act will become effective two years following its enactment, although states retain the option to modify their laws sooner.