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Compliance March 9, 2023
New Bill Would Protect Sponsored Health Plans During Lockouts, Strikes
Congressional Democrats have introduced legislation issuing fines to employers that terminate or alter group health coverage for employees locked out or participating in a strike.
Reported by Paul Mulholland
House and Senate Democrats introduced a bill Wednesday that would penalize employers for altering or terminating an employee’s coverage under a group health care plan during an employee lockout or for participating in a strike.
The bill was introduced by Representative Chris Deluzio, D-Pennsylvania; Representative Susan Wild, D-Pennsylvania; Senator Sherrod Brown, D-Ohio; and Senator Bob Casey, D-Pennsylvania. The legislation has also been cosponsored by eight house Democrats, as of Thursday.
The bill provides that if an employer alters or terminates an employee’s coverage in a group health plan during a lawful strike or lockout, the employer will be fined $75,000 per offense during a lockout and $50,000 per offense during a strike. These fines can be doubled for repeat offenses within a five-year period. The bill uses the phrase “group health plan” as understood in Section 607 of the Employee Retirement Income Security Act.
Each employee whose plan is altered or terminated during a strike or lockout constitutes a single offense, according to Brown’s office.
A press release from Deluzio’s office said that the National Labor Relations Act forbids employers from firing employees for participating in a lawful strike, but employers often cancel employees’ health coverage as a way to coerce them to abandon the strike.
Deluzio cited the ongoing strike by employees of the Pittsburgh Post-Gazette, whose health benefits were terminated by their employer, Block Communications Inc. Deluzio’s district, Pennsylvania’s 17th, includes much of the greater Pittsburgh area.
He also cited a Raytheon Technologies-owned plant in Troy, Ohio, which withheld access to health benefits during an employee lockout after ownership could not reach an agreement with the associated union.
The legislation is supported by the Communication Workers of America, the American Federation of Teachers, United Steelworkers, United Mine Workers of America and the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, among other labor organizations.