HB535 Summary

• Amends Alabama Code Section 25-4-78 to allow employees to receive unemployment benefits when locked out by employers during labor disputes, carving out an exception to the existing disqualification rule.

• Redefines the labor dispute disqualification to exclude employer lockouts, while maintaining the disqualification for strikes and other labor disputes initiated by employees.

• Retains the existing definition of "labor dispute" as any controversy concerning employment terms, tenure, conditions, representation, or negotiation, but excludes disputes between individual workers and their employers.

• Becomes effective October 1, 2025.