August 4, 2025
The SHIELD Act will help small businesses retain qualified workers
What it means: The Securing Help for Involuntary Employment Loss and Displacement (SHIELD) Act prohibits employees engaged in strikes or similar labor disputes from collecting unemployment benefits. This poses significant problems for small businesses in retaining a qualified workforce, and NFIB sent a letter to Congress urging their support.
Our take: “Several states have implemented government-run systems to pay unemployment to individuals who voluntarily walk off the job. These unemployment benefits for striking workers have created an incentive for workers to abdicate their responsibilities to their employer without the threat of negative consequences in the form of loss of pay or termination,” said Tyler Dever, NFIB Principal of Federal Government Relations.
Many small businesses currently struggle to retain qualified workers, and unemployment benefits for striking workers provide incentives to continue labor disputes. The Securing Help for Involuntary Employment Loss and Displacement (SHIELD) Act was introduced by Indiana Representative Rudy Yakym to help small businesses retain qualified workers. NFIB Principal of Federal Government Relations, Tyler Dever, sent a letter of support to Congress.
The SHIELD Act protects small businesses by eliminating that incentive for workers to walk off the job without consequences and restoring balance back to the labor markets. According to the 2024 NFIB Problems and Priorities Survey, more than 27% of small businesses owners feel that locating qualified employees is a critical problem.
Unemployment benefits were intended to provide temporary relief for workers who have lost their jobs through no fault of their own, not to serve as leverage in labor negotiations. The abuse of unemployment benefits by striking workers disproportionately affects small businesses who are much more sensitive to fluctuating labor markets.
NFIB strongly urges Congress to pass this legislation and continue to protect small businesses in their pursuit of a fair labor market. Read the full letter of support for more information.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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