Labor disputes

(a) In general Section 3304(a) of the Internal Revenue Code of 1986, as previously amended by this Act, is amended— (1) in paragraph (35), by striking and at the end; (2) by redesignating paragraph (36) as paragraph (37); and (3) by inserting after paragraph (35) the following new paragraph: (36) compensation is not denied to an otherwise eligible individual if the separation is due to a labor dispute if— (A) the individual has been locked out by their employer; (B) the dispute is the result of the employer’s failure to conform to the provisions of a labor contract; (C) the dispute is the result of the employer’s failure to conform to any State or Federal law relating to wages, hours, working conditions, or collective bargaining; or (D) the individual and others of the same grade or class are not participating in the dispute, financing it, or directly interested in it; and. (b) Effective date The amendments made by this section shall apply to weeks of unemployment beginning on or after the earlier of— (1) the date the State changes its statutes, regulations, or policies in order to comply with such amendments; or (2) January 1, 2027.