Expansion of good cause separations

(a) In general Section 3304 of the Internal Revenue Code of 1986, as previously amended by this title, is amended— (1) in subsection (a)— (A) in paragraph (26), by striking and at the end; (B) by redesignating paragraph (27) as paragraph (28); and (C) by inserting after paragraph (26) the following new paragraph: (27) an individual shall not be disqualified from unemployment compensation for separating from employment if that separation is for any compelling reason (as defined in subsection (g)); and; and (2) by adding at the end the following new subsection: (g) Definition of compelling reason (1) In general For purposes of subsection (a)(27), the Secretary of Labor shall establish a definition for the term compelling reason. (2) Requirements In defining the term compelling reason, the Secretary shall include the following reasons: (A) Illness or disability of a qualified family member (i) In general The illness or disability of a qualified family member of the individual. (ii) Qualified family member For purposes of clause (i), the term qualified family member means, with respect to an individual— (I) a spouse (including a domestic partner in a civil union or other registered domestic partnership recognized by a State) and a spouse's parent; (II) a child and a child's spouse; (III) a parent and a parent's spouse; (IV) a sibling and a sibling's spouse; (V) a grandparent, a grandchild, or a spouse of a grandparent or grandchild; and (VI) any other individual who is related by blood or affinity and whose association with the individual is the equivalent of a family relationship (as determined under regulations issued by the Secretary of the Labor). (B) Accompany the individual's spouse In order to accompany such individual's spouse— (i) to a place which is outside of the individual’s commuting area; and (ii) due to a change in location of the spouse's employment. (C) Relocation of workplace The relocation of the workplace of the individual to a place which is outside of the individual’s commuting area. (D) Care for a child The need to care for a child when child care has been lost and an alternative arrangement cannot be reasonably secured. (E) Unusual risk The individual’s job presents any unusual risk to the health or safety of the individual. (F) Employer’s failure to conform to State and Federal laws The employee’s reasonable belief that the employer failed to conform to any State or Federal law relating to wages, hours, working conditions, collective bargaining, harassment, discrimination, retaliation, or reasonable accommodations. (G) Other reasons Other reasons determined appropriate by the State.. (b) Effective date The amendments made by subsection (a) 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.