Chapter 239
2015 -- H 6001
Enacted 07/10/2015

A N   A C T
RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY - VOLUNTARY CONTRIBUTIONS

Introduced By: Representatives DeSimone, Palangio, and Ackerman
Date Introduced: March 27, 2015

It is enacted by the General Assembly as follows:
     SECTION 1. Sections 28-43-1 and 28-43-3 of the General Laws in Chapter 28-43
entitled "Employment Security - Contributions" are hereby amended to read as follows:
     28-43-1. Definitions. -- The following words and phrases as used in this chapter have the
following meanings, unless the context clearly requires otherwise:
      (1) "Balancing account" means a book account to be established within the employment
security fund, the initial balance of which shall be established by the director as of September 30,
1979, by transferring the balance of the solvency account on that date to the balancing account.
      (2) "Computation date" means September 30 of each year.
      (3) "Eligible employer" means an employer who has had three (3) consecutive
experience years during each of which contributions have been credited to his account and
benefits have been chargeable to this account.
      (4) "Employer's account" means a separate account to be established within the
employment security fund by the director as of September 30, 1958, for each employer subject to
chapters 42 -- 44 of this title title, out of the money remaining in that fund after the solvency
account has been established in the fund, by crediting to each employer an initial credit balance
bearing the same relation to the total fund balance so distributed, as his or her tax contributions to
the fund during the period beginning October 1, 1955 1955, and ending on September 30, 1958
1958, have to aggregate tax contributions paid by all employers during the same period; provided,
that nothing contained in this section shall be construed to grant to any employer prior claim or
rights to the amount contributed by him or her to the fund.
      (5) "Experience rate" means the contribution rate assigned to an employer's account
under whichever is applicable of schedules A -- I in § 28-43-8.
      (6) "Experience year" means the period of twelve (12) twelve (12), consecutive calendar
months ending September 30 of each year.
      (7) "Most recent employer" means the last base period base-period employer from
whom an individual was separated from employment and for whom the individual worked for at
least four (4) weeks, and in each of those four (4) weeks had earnings of at least twenty (20) times
the minimum hourly wage as defined in chapter 12 of this title.
      (8) "Reserve percentage" means, in relation to an employer's account, the net balance of
that account on a computation date, including any voluntary contributions made in accordance
with § 28-43-5.1, stated as a percentage of the employer's twelve (12) month twelve-month (12)
average taxable payroll for the last thirty-six (36) months ended on the immediately preceding
June 30.
      (9) "Reserve ratio of fund" means the ratio which the total amount available for the
payment of benefits in the employment security fund on September 30, 1979, or any computation
date thereafter, minus any outstanding federal loan balance, bears to the aggregate of all total
payrolls subject to this chapter paid during the twelve (12) month twelve-month (12) period
ending on the immediately preceding June 30, or the twelve (12) month twelve-month (12)
average of all total payrolls during the thirty-six (36) month thirty-six-month (36) period
ending on that June 30, whichever percentage figure is smaller.
      (10) "Taxable payroll" means, for the purpose of this chapter, the total of all wages as
defined in § 28-42-3(28) § 28-42-3(29).
      (11) "Tax year" means the calendar year.
      (12) "Total payroll" means, for the purpose of this chapter, the total of all wages paid by
all employers who are required to pay contributions under the provisions of chapters 42 -- 44 of
this title.
      (13) "Voluntary contribution" means a contribution paid by an employer to his or her
account in accordance with § 28-43-5.1 to reduce the employer's experience rate for the ensuing
tax year.
     28-43-3. Employer's accounts -- Credits and charges. -- Subsequent to the
establishment of a separate employer's account for each employer subject to chapters 42 -- 44 of
this title as set forth in § 28-43-1(4), the credits and charges to each employer's account, exclusive
of the state of Rhode Island, its political subdivisions, and their instrumentalities, shall be
determined as follows:
      (1) Credits to each employer's account:
      (i) After the September 30, 1958 1958, computation date all contributions required under
§ 28-43-8 and paid by each employer.
     (ii) All surcharges required and paid under § 28-43-4.
     (iii) All voluntary contributions made by the employer made in accordance with § 28-43-
5.1.
     (2) Charges to each employer's account:
     (i) Refunds of overpayments under § 28-43-13, as of the date refunded;
     (ii) For benefit years beginning subsequent to September 30, 1993, an amount equal to
the benefits provided in §§ 28-44-6(a) and (b), 28-44-7, and 28-44-8, and paid to each individual
with respect to a benefit year, as of the date paid. Those benefits shall be charged to the account
of the most recent base period base-period employer, as defined in § 28-43-1(7); provided, that
if a claimant works for two (2) or more employers concurrently, either full-time or part-time, and
becomes unemployed on the same day from more than one employer, any benefits paid as a result
of the unemployment shall be charged to the employers' accounts proportionately based upon the
ratio of base period base-period wages paid by each employer to the total base period base-
period wages paid by the concurrent employers from whom the claimant became separated from
employment. No charge for benefits paid under § 28-44-7 shall be made against the account of
any employer who shows to the satisfaction of the director that he or she has continued to employ
the individual during the weeks of his or her claim to the same extent that he or she had employed
him or her during that individual's base period, and those benefits, if not chargeable to the most
recent base period employer, shall be charged to the balancing account.
      (iii) If any base period base-period employer, whether or not he or she was the most
recent, shows to the satisfaction of the director that the individual who is in receipt of benefits
became separated from his or her last employment with that employer for reasons which that did
result or would have resulted in a disqualification under § 28-44-17 or 28-44-18 had that base
period base-period employer been his or her most recent, those benefits shall be charged to the
balancing account.
      (iv) The entire amount charged to the employer's account under § 28-43-9 relating to the
balancing rate.
      (v) Whenever the provisions in this section specify that an employer's account shall not
be charged, that non-charging shall be limited to benefits paid based on service with an employer
required to pay contributions under the provisions of chapters 42 -- 44 of this title.
      (vi) An amount equal to the benefits provided in § 28-44-62 and paid to each individual
with respect to a benefit year as of the date paid minus the proportionate share of those benefits
for which the state has been or will be reimbursed by the federal government. The federal share of
any payments shall be charged to the balancing account and federal reimbursements shall be
credited to the balancing account.
      (vii) Whenever any benefits are paid for benefit years beginning subsequent to July 7,
1996 1996, to an individual unemployed as a result of physical damage to the real property at the
employer's usual place of business caused by severe weather conditions, including, but not
limited to, hurricanes, snowstorms, ice storms or flooding, or fire except where caused by the
employer, those benefits shall be charged to the balancing account.
      (viii) An employer's account shall not be relieved of charges relating to any benefits
benefit payments made if the director establishes on or after October 1, 2013 2013, that the
payment was made because the employer, or an agent of the employer, was at fault for failing to
respond timely or adequately to the request of the department for information relating to the claim
for unemployment benefits that was subsequently overpaid.
     SECTION 2. Chapter 28-43 of the General Laws entitled "Employment Security -
Contributions" is hereby amended by adding thereto the following section:
     28-43-5.1. Employer's account - Voluntary contributions. -- Any employer who has
been assigned an experience rate, and who has filed all reports required under chapters 42 through
44 of this title, and has paid all contributions, interest, and penalties due under chapters 42
through 44 of this title, may make a voluntary contribution to his or her account. Such voluntary
contribution shall be paid not later than thirty (30) days after the date on which the department
has issued a notice of the employer's experience rate, or prior to the expiration of one-hundred-
twenty (120) days after the start of the calendar year, for which the experience rate is effective,
whichever is earlier. Upon timely payment of a voluntary contribution, the contribution shall be
credited to the employer's account balance and that employer shall receive a recomputation of its
experience rate for that calendar year. No voluntary contribution shall be refunded in whole or in
part.
     SECTION 3. This act shall take effect upon passage.
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LC002278
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