2025 -- S 0974

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LC002731

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY

INSURANCE --CONTRIBUTIONS

     Introduced By: Senators Lawson, Bissaillon, Tikoian, Lauria, DiMario, Euer, Urso,
Felag, Murray, and Gallo

     Date Introduced: April 16, 2025

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 28-40-1 of the General Laws in Chapter 28-40 entitled "Temporary

Disability Insurance — Contributions" is hereby amended to read as follows:

     28-40-1. Amount of employee contributions — Wages on which based.

     (a) The taxable wage base under this chapter for each calendar year shall be equal to the

greater of thirty-eight thousand dollars ($38,000) one hundred thousand dollars ($100,000) or the

annual earnings needed by an individual to qualify for the maximum weekly benefit amount and

the maximum duration under chapters 39 — 41 of this title. That taxable wage base shall be

computed as follows: Every September 30, the maximum weekly benefit amount in effect as of that

date shall be multiplied by thirty (30) and the resultant product shall be divided by thirty-six

hundredths (.36). If the result thus obtained is not an even multiple of one hundred dollars ($100),

it shall be rounded upward to the next higher even multiple of one hundred dollars ($100). That

taxable wage base shall be effective for the calendar year beginning on the next January 1.

     (b) Each employee shall contribute with respect to employment after the date upon which

the employer becomes subject to chapters 39 — 41 of this title, an amount equal to the fund cost

rate times the wages paid by the employer to the employee up to the taxable wage base as defined

and computed in subsection (a) of this section. The employee contribution rate for the following

calendar year shall be determined by computing the fund cost rate on or before November 15 of

each year as follows:

     (1) The total amount of disbursements made from the fund for the twelve-month (12)

period ending on the immediately preceding September 30 shall be divided by the total taxable

wages paid by employers during the twelve-month (12) period ending on the immediately

preceding June 30. The ratio thus obtained shall be multiplied by one hundred (100) and the

resultant product if not an exact multiple of one-tenth of one percent (0.1%) shall be rounded down

to the next lowest multiple of one-tenth of one percent (0.1%);

     (2) If the fund balance as of the preceding September 30 is less than the total disbursements

from the fund for the six-month (6) period ending on that September 30, that difference shall be

added to the total disbursements for the twelve-month (12) period ending September 30 for the

purpose of computing the fund cost rate, and if the resulting fund cost rate is not an exact multiple

of one-tenth of one percent (0.1%) it shall be rounded to the nearest multiple of one-tenth of one

percent (0.1%).

     SECTION 2. Sections 28-41-5 and 28-41-35 of the General Laws in Chapter 28-41 entitled

"Temporary Disability Insurance — Benefits" are hereby amended to read as follows:

     28-41-5. Weekly benefit rate — Dependents’ allowances. [Effective January 1, 2025.]

     (a) Benefit rate.

     (1) The benefit rate payable under this chapter to any eligible individual with respect to

any week of the individual’s unemployment due to sickness, when that week occurs within a benefit

year, shall be, for benefit years beginning on or after October 7, 1990, and prior to January 1, 2026,

four and sixty-two hundredths percent (4.62%); for benefit years beginning on or after January 1,

2026, and prior to January 1, 2027, five and thirty-eight hundredths percent (5.38%); and for benefit

years beginning on or after January 1, 2027, five and seventy-seven hundredths percent (5.77%) of

the wages paid to the individual in that calendar quarter of the base period in which the individual’s

wages were highest; provided, however, that the benefit rate shall not exceed eighty-five percent

(85%) of the average weekly wage paid to individuals covered by chapters 42 — 44 of this title for

the preceding calendar year ending December 31. If the maximum weekly benefit rate is not an

exact multiple of one dollar ($1.00) then the rate shall be raised to the next higher multiple of one

dollar ($1.00). Those weekly benefit rates shall be effective throughout the benefit years beginning

on or after July 1 of the year prior to July of the succeeding calendar year.

     (2) The benefit rate of any individual, if not an exact multiple of one dollar ($1.00), shall

be raised to the next higher multiple of one dollar ($1.00).

     (b) Dependents’ allowances. An individual to whom benefits for unemployment due to

sickness are payable under this chapter with respect to any week, shall, in addition to those benefits,

be paid with respect to each week a dependent’s allowance of twenty dollars ($20.00) or seven

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percent (7%) of the individual’s benefit rate payable under subsection (a) of this section, whichever

is greater, for each of that individual’s children, including adopted and stepchildren or that

individual’s court-appointed wards who, at the beginning of the individual’s benefit year, is under

eighteen (18) years of age and who is at that time in fact dependent on that individual. A

dependent’s allowance shall also be paid to that individual for any child, including an adopted child

or a stepchild or that individual’s court appointed ward, eighteen (18) years of age or over,

incapable of earning any wages because of mental or physical incapacity, and who is dependent on

that individual in fact at the beginning of the individual’s benefit year, including individuals who

have been appointed the legal guardian of that child by the appropriate court. However, in no

instance shall the number of dependents for which an individual may receive dependents’

allowances exceed five (5) in total. The weekly total of dependents’ allowances payable to any

individual, if not an exact multiple of one dollar ($1.00), shall be rounded to the next lower multiple

of one dollar ($1.00). The number of an individual’s dependents, and the fact of their dependency,

shall be determined as of the beginning of that individual’s benefit year; provided, that only one

individual shall be entitled to a dependent’s allowance for the same dependent with respect to any

week. Each individual who claims a dependent’s allowance shall establish their claim to it to the

satisfaction of the director under procedures established by the director.

     (c) Any individual’s benefit rate and/or dependents’ allowance in effect for a benefit year

shall continue in effect until the end of that benefit year.

     (d) Partial unemployment due to sickness. For weeks beginning on or after January 1,

2006, an individual partially unemployed due to sickness and otherwise eligible in any week shall

be paid sufficient benefits with respect to that week, so that their wages, rounded to the next higher

multiple of one dollar ($1.00), and their benefits combined will equal in amount the weekly benefit

rate to which the individual would be entitled if totally unemployed due to sickness in that week;

provided that an individual must have been totally unemployed due to sickness for at least seven

(7) consecutive days prior to claiming partial benefits under this provision; provided, that this

provision shall not apply if the individual is entitled to lag day benefits pursuant to § 28-41-9;

provided, further, that nothing contained herein shall permit any individual to whom remuneration

is payable for any work performed in any week in an amount equal to or greater than his or her

weekly benefit rate to receive benefits or waiting period credit for that week.

     28-41-35. Benefits. [Effective January 1, 2025.]

     (a) Subject to the conditions set forth in this chapter, an employee shall be eligible for

temporary caregiver benefits for any week in which the employee is unable to perform their regular

and customary work because the employee is:

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     (1) Bonding with a newborn child or a child newly placed for adoption or foster care with

the employee or domestic partner in accordance with the provisions of § 28-41-36(c); or

     (2) Caring for a child, parent, parent-in-law, grandparent, spouse, or domestic partner, who

has a serious health condition, subject to a waiting period in accordance with the provisions of §

28-41-12 [repealed]. Employees may use accrued sick time during the eligibility waiting period in

accordance with the policy of the individual’s employer.

     (b) Temporary caregiver benefits shall be available only to the employee exercising his or

her right to leave while covered by the temporary caregiver insurance program. An employee shall

file a written intent with their employer, in accordance with rules and regulations promulgated by

the department, with a minimum of thirty (30) days’ notice prior to commencement of the family

leave. Failure by the employee to provide the written intent may result in delay or reduction in the

claimant’s benefits, except in the event the time of the leave is unforeseeable or the time of the

leave changes for unforeseeable circumstances.

     (c) Employees cannot file for both temporary caregiver benefits and temporary disability

benefits for the same purpose, concurrently, in accordance with all provisions of this act and

chapters 39 — 41 of this title.

     (d) Temporary caregiver benefits may be available to any individual exercising their right

to leave while covered by the temporary caregiver insurance program, commencing on or after

January 1, 2014, which shall not exceed the individual’s maximum benefits in accordance with

chapters 39 — 41 of this title. The benefits for the temporary caregiver program shall be payable

with respect to the first day of leave taken after the waiting period and each subsequent day of leave

during that period of family temporary disability leave. Benefits shall be in accordance with the

following:

     (1) Beginning January 1, 2014, temporary caregiver benefits shall be limited to a maximum

of four (4) weeks in a benefit year;

     (2) Beginning January 1, 2022, temporary caregiver benefits shall be limited to a maximum

of five (5) weeks in a benefit year;

     (3) Beginning January 1, 2023, temporary caregiver benefits shall be limited to a maximum

of six (6) weeks in a benefit year;

     (4) Beginning January 1, 2025, temporary caregiver benefits shall be limited to a maximum

of seven (7) weeks in a benefit year; and

     (5) Beginning January 1, 2026, temporary caregiver benefits shall be limited to a maximum

of eight (8) weeks in a benefit year.;

     (6) Beginning January 1, 2027, temporary caregiver benefits shall be limited to a maximum

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of ten (10) weeks in a benefit year; and

     (7) Beginning January 1, 2028, temporary caregiver benefits shall be limited to a maximum

of twelve (12) weeks in a benefit year.

     (e) In addition, no individual shall be paid temporary caregiver benefits and temporary

disability benefits that together exceed thirty (30) times the individual’s weekly benefit rate in any

benefit year.

     (f) Any employee who exercises their right to leave covered by temporary caregiver

insurance under this chapter shall, upon the expiration of that leave, be entitled to be restored by

the employer to the position held by the employee when the leave commenced, or to a position with

equivalent seniority, status, employment benefits, pay, and other terms and conditions of

employment including fringe benefits and service credits that the employee had been entitled to at

the commencement of leave.

     (g) During any caregiver leave taken pursuant to this chapter, the employer shall maintain

any existing health benefits of the employee in force for the duration of the leave as if the employee

had continued in employment continuously from the date the employee commenced the leave until

the date the caregiver benefits terminate; provided, however, that the employee shall continue to

pay any employee shares of the cost of health benefits as required prior to the commencement of

the caregiver benefits.

     (h) No individual shall be entitled to waiting period credit or temporary caregiver benefits

under this section for any week beginning prior to January 1, 2014. An employer may require an

employee who is entitled to leave under the federal Family and Medical Leave Act, Pub. L. No.

103-3 and/or the Rhode Island parental and family medical leave act, § 28-48-1 et seq., who

exercises their right to benefits under the temporary caregiver insurance program under this chapter,

to take any temporary caregiver benefits received, concurrently, with any leave taken pursuant to

the federal Family and Medical Leave Act and/or the Rhode Island parental and family medical

leave act.

     (i) Temporary caregiver benefits shall be in accordance with the federal Family and

Medical Leave Act (FMLA), Pub. L. No. 103-3 and the Rhode Island parental and family medical

leave act in accordance with § 28-48-1 et seq. An employer may require an employee who is entitled

to leave under the federal Family and Medical Leave Act, Pub. L. No. 103-3 and/or the Rhode

Island parental and family medical leave act, § 28-48-1 et seq., who exercises their right to benefits

under the temporary caregiver insurance program under this chapter, to take any temporary

caregiver benefits received, concurrently, with any leave taken pursuant to the federal Family and

Medical Leave Act and/or the Rhode Island parental and family medical leave act.

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     SECTION 3. This act shall take effect January 1, 2026.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY

INSURANCE --CONTRIBUTIONS

***

     This act would increase the taxable wage base for temporary disability insurance claims

from thirty-eight thousand dollars ($38,000) to one hundred thousand dollars ($100,000) or the

annual earnings needed by an individual to qualify for the maximum weekly benefit amount and

the maximum duration under chapters 39 through 41 of this title. This act would also increase the

percent of wages used in the base period to determine an individual's weekly benefit amount and

would amend the duration period of caregiver benefits for the years 2027, 2028 and beyond.

     This act would take effect January 1, 2026.

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