Introduced By: Representatives Martineau, Faria, Moura, Menard and S. Anderson
Date Introduced : June 11, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 28-42-37 of the General Laws in Chapter 28-42 entitled "Employment Security -- General Provisions" is hereby amended to read as follows:
28-42-37. Advisory council. -- {ADD (a) ADD} The human
resource investment council shall establish a state advisory council
of {DEL seven (7) DEL} {ADD eight (8) ADD} members. Four (4)
of the members shall be appointed by the governor from recommendations
made by the human resource investment council; two (2) of those
members shall be persons who, because of vocation, employment
or affiliation can be classed as employers and two (2) of those
members shall be persons who because of vocation, employment or
affiliation can be classed as employees. The chair of the house
committee on labor, the chair of the senate committee on labor
{DEL and DEL} {ADD , ADD} the executive director of the economic
policy council {ADD and the director of the department of labor
and training ADD} shall serve on the council by virtue of their
respective positions. The council shall aid the director of the
department of labor and training in formulating policies and solving
problems relating to the administration of chapters 42 -- 44 of
this title, and in assuring impartiality, neutrality, and freedom
from partisan influence in the solution of those problems.
{ADD (b) The council shall provide on or before March 31 of each year to the Governor and the General Assembly a written report describing its activities. ADD}
SECTION 2. Sections 28-43-1, 28-43-3, 28-43-7, 28-43-8,and 28-43-8.5 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 shall 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" shall mean 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, 43, and 44 of this 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 which shall bear 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 and ending on September 30, 1958 have to aggregate tax contributions paid by all employers during the same period; provided, however, that nothing contained herein 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 through I in section 28-43-8.
(6) "Experience year" means the period of twelve (12) consecutive calendar months ending September 30 of each year.
(7) "Most recent employer" means the last 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 stated as a percentage of the employer's twelve-month 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 {DEL taxable DEL} {ADD total ADD} payrolls subject
to this chapter paid during the twelve-month period ending on
the immediately preceding June 30, or the twelve-month average
of all {DEL taxable DEL} {ADD total ADD} payrolls during the
thirty-six month 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 section 28-42-3(28).
(11) "Tax year" means the calendar year.
{ADD (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 uder the provisions of chapters 42-44 of this title. ADD}
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, 43, and 44 of this title as set forth in section 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 computation date all contributions required under section 28-43-8 and paid by each employer.
(ii) All surcharges required and paid under section 28-43-4.
(2) Charges to each employer's account:
(i) Refunds of overpayments under section 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 section 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
employer, as defined in section 28-43-1(7); provided, however,
that if a claimant works for two 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 wages paid
by each employer to the total base period wages paid by the concurrent
employers from whom the claimant became separated from employment.
Provided, however, that no charge for benefits paid under section
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. {DEL Provided, further, that where an individual
leaves work voluntarily without good cause, is discharged for
proved misconduct connected with his or her work, or refuses suitable
work, and then becomes unemployed after performing service in
employment from a subsequent employer, any benefits paid to that
individual shall be charged to the account of the last separating
employer. DEL}
(iii) If any 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 did result or would have resulted in a disqualification under section 28-44-17 or 28-44-18 had that 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 section 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 section 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 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.
28-43-7. Taxable wage base. -- The taxable wage
base under this chapter for the tax year beginning January 1,
{DEL 1980 DEL} {ADD 1999ADD}, and all tax years thereafter shall
be {DEL equal to seventy percent (70%) of the average annual
wage in covered employment during the calendar year immediately
preceding the computation date for the effective tax year; the
computed figure shall be rounded upward to the next higher even
multiple of two hundred dollars ($200). That taxable wage base
shall be computed as follows: On September 30, 1979, and every
computation date thereafter the total annual wages paid to individuals
in covered employment for the preceding calendar year by all employers
who are required to pay contributions under the provisions of
chapters 42 -- 44 of this title, shall be divided by the monthly
average number of individuals in the covered employment during
the preceding calendar year, and the quotient shall be multiplied
by .70. If the result thus obtained is not an even multiple of
two hundred dollars ($200), it shall be rounded upward to the
next higher even multiple of two hundred dollars ($200). DEL}
{ADD twelve thousand dollars ($12,000) if the amount of the employment
security fund is more than two hundred twenty five million dollars
($225,000,000), or fourteen thousand dollars ($14,000) if the
amount of the employment security fund is more than one hundred
seventy five million dollars ($175,000,000) but less than or equal to two
hundred twenty five million dollars ($225,000,000), or sixteen
thousand dollars ($16,000) if the amount of the employment security
fund is more than one hundred twenty five million dollars ($125,000,000)
but less than or equal to one hundred seventy five million dollars ($175,000,000),
or eighteen thousand dollars ($18,000) if the amount of the employment
security fund is less than or equal to one hundred twenty five million dollars
($125,000,000) but more than seventy five million dollars ($75,000,000),
or nineteen thousand dollars ($19,000) if the amount of the employment
security is less than or equal to seventy five million ($75,000,000). The taxable
wage base shall be determined by the amount of the employment
security fund on September 30th of each calendar year and ADD}
{DEL That DEL} {ADD that ADD} taxable wage base shall be
effective for the tax year immediately following the {DEL computation DEL}
{ADD determination ADD} date.
28-43-8. Experience rates -- Tables. -- (a) (1)
Whenever, as of September 30, 1987 or any computation date thereafter,
the amount in the employment security fund available for benefits
is {DEL eleven and five-tenths percent (11.5%) or more of taxable
wages DEL} {ADD six and four tenths percent (6.4%) or more of
total payrolls ADD} as determined in section 28-43-1(9), an experience
rate for each eligible employer for the immediately following
calendar year shall be determined in accordance with schedule
A below.
(2) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is {DEL eleven percent (11.0%) but less than eleven
and five-tenths percent (11.5%) of taxable wages DEL} {ADD six
and one-tenth percent (6.1%) but less than six and four-tenths
(6.4%) of total payrolls ADD} as determined in section 28-43-1(9),
an experience rate for each eligible employer for the immediately
following calendar year shall be determined in accordance with
schedule B below.
(3) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is {DEL ten and five-tenths percent (10.5%) but
less than eleven percent (11.0%) of taxable wages DEL} {ADD five
and eight-tenths percent (5.8%) but less than six and one-tenth
(6.1%) of total payrolls ADD} as determined in section 28-43-1(9),
an experience rate for each eligible employer for the immediately
following calendar year shall be determined in accordance with
schedule C below.
(4) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is {DEL nine and five-tenths percent (9.5%) but
less than ten and five-tenths percent (10.5%) of taxable wages DEL}
{ADD five and three-tenths percent (5.3%) but less than five and
eight-tenths (5.8%) of total payrolls ADD} as determined in section
28-43-1(9), an experience rate for each eligible employer for
the immediately following calendar year shall be determined in
accordance with schedule D below.
(5) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is {DEL eight and five-tenths percent (8.5%) but
less than nine and five-tenths percent (9.5%) of taxable wages DEL}
{ADD four and seven-tenths percent (4.7%) but less than five and
three-tenths (5.3%) of total payrolls ADD} as determined in section
28-43-1(9), an experience rate for each eligible employer for
the immediately following calendar year shall be determined in
accordance with schedule E below.
(6) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is {DEL six and five-tenths percent (6.5%) but
less than eight and five-tenths percent (8.5%) of taxable wages DEL}
{ADD three and six-tenths percent (3.6%) but less than four and
seven-tenths (4.7%) of total payrolls ADD} as determined in section
28-43-1(9), an experience rate for each eligible employer for
the immediately following calendar year shall be determined in
accordance with schedule F below.
(7) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is {DEL five and five-tenths percent (5.5%) but
less than six and five-tenths percent (6.5%) of taxable wages DEL}
{ADD three percent (3%) but less than three and six-tenths (3.6%)
of total payrolls ADD} as determined in section 28-43-1(9), an
experience rate for each eligible employer for the immediately
following calendar year shall be determined in accordance with
schedule G below.
(8) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is {DEL five percent (5.0%) but less than five
and five-tenths percent (5.5%) of taxable wages DEL} {ADD two
and seventy five hundredths percent (2.75%) but less than 3 percent
(3%) of total payrolls ADD} as determined in section 28-43-1(9),
an experience rate for each eligible employer for the immediately
following calendar year shall be determined in accordance with
schedule H below.
(9) Whenever, as of September 30, 1987 or any computation date
thereafter, the amount in the employment security fund available
for benefits is less than {DEL five percent (5.0%) of taxable
wages DEL} {ADD two and seventy five hundredths percent (2.75%)
of total payrolls ADD} as determined in section 28-43-1(9), an
experience rate for each eligible employer for the immediately
following calendar year shall be determined in accordance with
schedule I below.
(10) Whenever the amount in the employment security fund available for benefits, net of obligations owed to the federal government, is less than zero at the end of the second month in any calendar quarter, every employer subject to the contribution provisions of this chapter shall be required to pay a surtax of three-tenths of one percent (.3%) of the individual employer's taxable wages for the calendar quarter, in addition to any other contribution which the employer is required to make under any other provision of this chapter.REFER TO APPENDIX FOR THE PROPER TABLE (b) The contribution rate for each employer for a given calendar year shall be determined and the employer notified thereof not later than April 1 next succeeding each computation date. That determination shall be binding unless an appeal is taken in accordance with provisions of section 28-43-13.
28-43-8.5. Job development assessment. -- For the
tax year 1994 and subsequent tax years each employer subject to
this chapter shall be required to pay a job development assessment
of {DEL fifteen DEL} {ADD nineteen ADD} hundredths of one
percent {DEL (.15%) DEL} {ADD (.19%) ADD} of that employer's
taxable payroll, in addition to any other payment which that employer
is required to make under any other provision of this chapter;
provided, however, that the assessment shall not be considered
as part of the individual employer's contribution rate for the
purpose of determining the individual employer's balancing charge
pursuant to section 28-43-9. Provided further however that the
tax rate for all employers subject to the contribution provisions
of chapters 42 -- 44 of this title shall be reduced by {DEL fifteen DEL}
{ADD nineteen ADD} hundredths of one percent {DEL (.15%) DEL}
{ADD (.19%) ADD}.
SECTION 3. Sections 28-44-17, 28-44-18, 28-44-57 of the General Laws in Chapter 28-44 entitled "Employment Security -- Benefits" are hereby amended to read as follows:
28-44-17. Voluntary leaving without good cause. -- An individual who leaves work voluntarily without good cause shall be ineligible for waiting period credit or benefits until he or she establishes to the satisfaction of the director that he or she has subsequent to that leaving had at least eight (8) weeks of work, and in each of those eight (8) weeks has had earnings of at least twenty (20) times the minimum hourly wage as defined in chapter 12 of this title for performing services in employment for one or more employers subject to chapters 42 -- 44, of this title. For the purposes of this section, voluntary leaving work with good cause shall include sexual harassment against members of either sex. For the purposes of this section, voluntarily leaving work without good cause shall include {ADD voluntarily leaving work with an employer to accompany, join or follow his or her spouse in a new locality in connection with the retirement of his or her spouse, or ADD} failure by a temporary employee to contact the temporary help agency upon completion of the most recent work assignment to seek additional work unless good cause is shown for said failure; provided, however, that the temporary help agency gave written notice to the individual that the individual is required to contact the temporary help agency at the completion of the most recent work assignment to seek additional work.
28-44-18. Discharge for misconduct. -- An individual who has been discharged for proved misconduct connected with his or her work shall thereby become ineligible for benefits for the week in which that discharge occurred and until he or she establishes to the satisfaction of the director that he or she has, subsequent to that discharge, had at least eight (8) weeks of work, and in each of that eight (8) weeks has had earnings of at least twenty (20) times the minimum hourly wage as defined in chapter 12 of this title for performing services in employment for one or more employers subject to chapters 42 -- 44, inclusive, of this title; provided, however, that any individual who is required to leave his or her work pursuant to a plan, system, or program, public or private, providing for retirement, and who is otherwise eligible, shall under no circumstances be deemed to have been discharged for misconduct. However, if an individual is discharged and a complaint is issued by the regional office of the national labor relations board or the state labor relations board that an unfair labor practice has occurred in relation to the discharge, the individual shall be entitled to benefits if otherwise eligible. {ADD For the purposes of this section, misconduct shall be defined as deliberate conduct in wilful disregard of the employer's interest, or a knowing violation of a reasonable and uniformly enforced rule or policy of the employer, provided that such violation is not shown to be as a result of the employee's incompetence. Notwithstanding any other provisions of chapters 42 - 44 of this title, this section shall be construed in a manner which is fair and reasonable to both the employer and the employed worker. ADD}
28-44-57. Fees and costs chargeable. -- (a) No individual claiming benefits shall be charged fees of any kind by the director or his or her representative, or by the board of review or its representatives, in any proceeding under chapters 42 -- 44 of this title. Any individual claiming benefits in any proceeding or court action may be represented by counsel or other duly authorized agent; the director shall have the authority to fix the fees of that counsel or other duly authorized agent but no counsel or agent shall together be allowed to charge or receive for those services more than ten percent (10%) of the maximum benefits at issue in that proceeding or court action but not less than fifty dollars ($50.00) except as specifically allowed by the superior court.
(b) In any case in which {ADD either ADD} an employer appeals from a determination in favor of the claimant {ADD or a claimant appeals from a decision unfavorable to the claimant ADD} to an appeals body other than a court of law and the claimant retains an attorney-at-law to represent him or her, the attorney shall be entitled to a counsel fee of fifteen percent (15%) of the amount of benefits at issue before the appeals body but not less than fifty dollars ($50.00), which shall be paid by the director out of the employment security administrative funds, within thirty (30) days of the date of his or her appearance.
(c) (1) An attorney-at-law who represents an individual claiming benefits on an appeal to the courts shall be entitled to counsel fees upon final disposition of the case and necessary court costs and printing disbursements as fixed by the court.
(2) The director shall pay those counsel fees, costs, and disbursements, out of the employment security administrative funds in each of the following cases:
(i) Any court appeal taken by a party other than the claimant from an administrative or judicial decision favorable in whole or in part to the claimant;
{DEL (ii) Any court appeal taken by a claimant from a decision
which reverses a prior decision in his or her favor; DEL}
(iii) Any court appeal by a claimant from a decision denying or reducing benefits awarded under a prior administrative or judicial decision;
(iv) Any court appeal as a result of which the claimant is awarded
benefits {DEL ; DEL} {ADD . ADD}
{DEL (v) Any court appeal by a claimant from a decision by
an administrative appeal tribunal, board of review, or court which
was not unanimous. DEL}
SECTION 4. This act shall take effect upon passage.
