S

scrutinizing workers in California, including writers and actors who are still picking up Hollywood studios,

would

qualify for unemployment benefits under legislation passed by state lawmakers

Thursday

.

Gov. Gavin Newsom now faces a crucial decision on whether or not to sign the bill into law and provide financial relief to striking entertainment workers and other union members who are walking out in an era of rising tensions between workers and employers in California.

Under Senate Bill 799, California would become one of the few states where striking workers can collect unemployment benefits, joining New York and New Jersey. The bill, which is as strongly supported by labor unions as it was opposed by the California Chamber of Commerce, would allow striking workers to collect unemployment benefits after they go on strike.

for

two weeks.

Newsom has been taking a backstage role as the strikes in Hollywood drag on for more than 100 days, insisting he is working with both sides.

At an event organized by

POLITICS Politics

On Tuesday, the governor expressed concerns about unemployment insurance fund debt but did not say whether he would veto the bill. California’s unemployment fund is more than $18 billion in debt after borrowing money from the federal government to pay unemployment benefits.

“I think you have to be careful about that before you start the conversation about expanding its use,” Newsom said.

Democrats, on the other hand, have expressed support for unions.

We want people to be able to pay their rent and to be able to put food on the table during a strike or not. It’s the right thing to do, Sen. Anthony Portantino (D-Burbank), who wrote the bill, said on the Senate floor. The bill cleared the Senate on Thursday, with Republicans opposing the legislation over concerns it would hurt businesses and “put the thumb on the scale” in favor of unions.

In California, unemployment benefits are $450 per week for up to 26 weeks. To qualify for unemployment, Californians must meet other requirements, such as making a reasonable effort to look for work.

Unions, including the Writers Guild of America and SAG-AFTRA, have pushed for passage of the bills during committee hearings. On

September

On Oct. 7, members of those unions also held a meeting on SB 799, urging lawmakers to pass the legislation. Unions have strike funds to help workers pay their bills, but union leaders say that’s not enough, especially as strikes drag on for months.

The General Assembly passed the bill on Monday.

Assemblymember Bill Essayli (R-Corona) said on the Assembly floor that the legislation was fundamentally unfair to businesses as the state would essentially be siding with striking union members during a labor dispute

.

By doing this we are giving one party an advantage, said Essayli, who joined other Republicans in voting against the bill. You subsidize the labor side with tax money.

Assemblymember Lori D. Wilson

(D-Suisun

City

)

voted in favor of SB 799, but also expressed concerns about unemployment fund debt and who qualifies for those benefits.

We must tackle the problem of underfunding. We have to deal with this issue at hand, she said on the floor of the Assembly.

The California Chamber of Commerce argued that expanding unemployment benefits to striking workers would be akin to a tax increase

for

employers, as they finance the benefit. Businesses pay state and federal payroll taxes on the first $7,000 in annual wages of each employee to fund the unemployment insurance program.

But those tax dollars haven’t been enough to fund unemployment benefits. The state also borrowed $20 billion from the federal government in 2020 to fund unemployment claims. To repay that loan, employers would pay additional taxes annually.

Money from the state’s general fund also goes toward interest on the loan, which could be used to pay off the loan

2032

This is evident from estimates from the Legislative Analysts Office. The amount of time it takes to pay off the loan could be longer if more job losses occur in California.

Determining the impact of the bills on the unemployment fund is difficult to predict because it depends on several factors, including the number of striking workers and how long the strike lasts. The cost to the state unemployment insurance fund is likely to be several million to tens of millions of dollars,” according to the Assembly Appropriations Committees analysis of the bill.