Senate Bill No. 440 proposes changes to the eligibility criteria for unemployment benefits for workers involved in labor disputes. Specifically, it amends subdivision (3) of subsection (a) of section 31-236 of the general statutes by repealing the existing language and substituting it with new provisions. The bill stipulates that for labor disputes commencing on or after December 14, 2027, individuals will be eligible for unemployment benefits after 14 consecutive days of striking, provided they are not participating in or financially supporting the dispute and do not belong to a union whose members are involved in the dispute. Additionally, the bill clarifies the definition of a lockout and the conditions under which it applies.

The bill is set to take effect on October 1, 2026, and is expected to have fiscal implications, including potential costs and revenue gains for the Unemployment Insurance Trust Fund. The Labor Department anticipates a one-time cost of $415,000 for necessary technology changes to its unemployment insurance administration system, with $205,000 in FY 27 and $210,000 in FY 28. The ongoing fiscal impact will depend on the number of workers and employers affected by the new eligibility criteria.