Employees in union dispute denied unemployment insurance

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The Nevada Supreme Court has rejected the appeal of 347 workers protesting their denial of unemployment benefits because they were involved in a labor dispute.

Nevada law disqualifies a person for benefits if their lack of employment is due to a labor dispute.

The workers at Medco in Las Vegas, however, argued their case is different because they weren't involved in a strike. Instead, management at Medco locked them out of the plant because negotiations over wages and benefits were failing.

"Appellants argue that an employee who is unemployed due to an employer-based lockout is not precluded from collecting unemployment benefits," the order states. "We determine that appellants' challenge is without merit."

The court order signed by all seven Nevada Supreme Court justices states that the lockout was "the result of failed negotiations concerning appellants' wages and medical benefits." Therefore, they ruled, unemployment benefits are barred under state law.