Virginia Senate Bill 433 Change Notification
Virginia SB 433 amends § 60.2-612 of the Code of Virginia to modify unemployment insurance eligibility rules, primarily by addressing how employer lockouts are treated. The measure clarifies that a lockout initiated by an employer is not considered a disqualifying labor dispute, meaning impacted employees may qualify for unemployment benefits. However, benefits may still be denied in limited circumstances, such as when the employee’s bargaining representative refuses to negotiate in good faith or violates an existing collective bargaining agreement.
Effective Date
July 1, 2026
Virginia SB 433 Implication to Stakeholders
This change increases the likelihood that employees involved in employer-initiated lockouts will qualify for unemployment benefits, which may lead to higher benefit charges to employer accounts in those situations. Employers engaged in labor disputes no longer have the same ability to rely on a blanket disqualification of benefits during lockouts. Additionally, the enhanced verification requirements may improve program integrity overall, but they do not materially reduce employer exposure to claims arising from labor disputes.
Recommended Action for Employers
Employers should carefully evaluate labor relations strategies, particularly when considering or implementing a lockout, as such actions may now result in increased unemployment claims liability. Coordination with legal counsel and labor relations advisors is recommended to understand the financial and compliance implications.
Employers should also continue to monitor claims closely and respond promptly to agency inquiries, ensuring accurate reporting of separation circumstances to mitigate improper charges.
