2026 -- S 2927

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LC005296

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY

INSURANCE -- GENERAL PROVISIONS

     Introduced By: Senators Vargas, Thompson, LaMountain, Quezada, Lauria, DiPalma,
Pearson, Kallman, Mack, and Burke

     Date Introduced: March 04, 2026

     Referred To: Senate Labor & Gaming

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 28-39-2 of the General Laws in Chapter 28-39 entitled "Temporary

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

     28-39-2. Definitions.

     The following words and phrases, as used in chapters 39 — 41 of this title, have the

following meanings unless the context clearly requires otherwise:

     (1) “Average weekly wage” means the amount determined by dividing the individual’s

total wages earned for services performed in employment within his or her base period by the

number of that individual’s credit weeks within the base period.

     (2) “Base period” with respect to an individual’s benefit year when the benefit year begins

on or after October 7, 1990, means the first four (4) of the most recently completed five (5) calendar

quarters immediately preceding the first day of an individual’s benefit year; provided, that for any

individual’s benefit year when the benefit year begins on or after October 4, 1992, and for any

individual deemed monetarily ineligible for benefits under the “base period” as defined in this

subdivision, the department shall make a re-determination of entitlement based upon an alternate

base period that consists of the last four (4) completed calendar quarters immediately preceding the

first day of the claimant’s benefit year. Notwithstanding anything contained to the contrary in this

subdivision, the base period shall not include any calendar quarter previously used to establish a

valid claim for benefits; provided, however, that the “base period” with respect to members of the

United States military service, the Rhode Island National Guard, or a United States military reserve

force, and who served in a United States declared combat operation during their military service,

who file a claim for benefits following their release from their state or federal active military service

and who are deemed to be monetarily ineligible for benefits under this section, shall mean the first

four (4) of the most recently completed five (5) calendar quarters immediately preceding the first

day the individual was called into that state or federal active military service; provided, that for any

individual deemed monetarily ineligible for benefits under the “base period” as defined in this

section, the department shall make a re-determination of entitlement based upon an alternative base

period that consists of the last four (4) completed calendar quarters immediately preceding the first

day the claimant was called into that state or federal active military service. Notwithstanding any

provision of this section of the general or public laws to the contrary, the base period shall not

include any calendar quarter previously used to establish a valid claim for benefits.

     (3) “Benefit” means the money payable, as provided in chapters 39 — 41 of this title, to an

individual as compensation for his or her unemployment caused by sickness.

     (4) “Benefit credits” means the total amount of money payable to an individual as benefits,

as provided in § 28-41-7.

     (5) “Benefit rate” means the money payable to an individual as compensation, as provided

in chapters 39 — 41 of this title, for his or her wage losses with respect to any week during which

his or her unemployment is caused by sickness.

     (6) “Benefit year” with respect to any individual who does not already have a benefit year

in effect, and who files a valid claim for benefits as of November 16, 1958, or any later date, means

fifty-two (52) consecutive calendar weeks, the first of which shall be the week containing the day

as of which he or she first files that valid claim in accordance with regulations adopted as

subsequently prescribed; provided, that for any benefit year beginning on or after October 7, 1990,

the benefit year shall be fifty-three (53) consecutive calendar weeks if the subsequent filing of a

new valid claim immediately following the end of a previous benefit year would result in the

overlapping of any quarter of the base period of the prior new claim. In no event shall a new benefit

year begin prior to the Sunday next following the end of the old benefit year.

     (i) For benefit years that begin on or after July 1, 2012, an individual’s benefit year will

begin on the Sunday of the calendar week in which an individual first became unemployed due to

sickness and for which the individual has filed a valid claim for benefits.

     (7) “Board” means the board of review as created under chapter 16.1 of title 42.

     (8) “Calendar quarter” has the same definition as contained in chapter 42 of this title.

     (9) “Credit week” means any week within an individual’s base period in which that

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individual earns wages amounting to 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 39 — 41 of this title.

     (10) “Director” means the director of the department of labor and training.

     (11) “Employee” means any person who is or has been employed by an employer subject

to chapters 39 — 41 of this title and in employment subject to those chapters.

     (12) “Employer” means any employing unit that is an employer under chapters 42 — 44

of this title.

     (13) “Employing unit” has the same definition as contained in chapter 42 of this title and

includes any governmental entity that elects to become subject to the provisions of chapters 39 —

41 of this title, in accordance with the provisions of §§ 28-39-3.1 and 28-39-3.2.

     (14) “Employment” has the same definition as contained in chapter 42 of this title and

notwithstanding any provision of the general laws to the contrary, for purposes of this chapter the

term “employment” shall include service performed by any individual in the employ of the State

of Rhode Island, including all departments, agencies, boards, commissions, and instrumentalities

thereof, whether such service is performed on a full-time, part-time, seasonal, or temporary basis,

unless specifically excluded under this chapter..

     (15) “Employment office” has the same definition as contained in chapter 42 of this title.

     (16) “Fund” means the Rhode Island temporary disability insurance fund established by

this chapter.

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

2006, an individual shall be deemed partially unemployed due to sickness in any week of less than

full-time work if he or she fails to earn in wages for services for that week an amount equal to the

weekly benefit rate for total unemployment due to sickness to which he or she would be entitled if

totally unemployed due to sickness and eligible.

     (i) For the purposes of this subdivision and subdivision (22) of this section, “Wages”

includes only that part of remuneration for any work, which is in excess of one-fifth (1/5) of the

weekly benefit rate for total unemployment, rounded to the next lower multiple of one dollar

($1.00), to which the individual would be entitled if totally unemployed and eligible in any one

week, and “services” includes only that part of any work for which remuneration in excess of one-

fifth (1/5) of the weekly benefit rate for total unemployment, rounded to the next lower multiple of

one dollar ($1.00), to which the individual would be entitled if totally unemployed and eligible in

any one week is payable; provided, that nothing contained in this paragraph shall permit any

individual to whom remuneration is payable for any work performed in any week in an amount

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equal to, or greater than, his or her weekly benefit rate to receive benefits under this subdivision

for that week.

     (18) “Reserve fund” means the temporary disability insurance reserve fund established by

§ 28-39-7.

     (19) “Services” means all endeavors undertaken by an individual that are paid for by

another or with respect to which the individual performing the services expects to receive wages or

profits.

     (20) “Sickness.” An individual shall be deemed to be sick in any week in which, because

of his or her physical or mental condition, including pregnancy, he or she is unemployed and unable

to perform his or her regular or customary work or services.

     (21)(i) “Taxes” means the money payments required by chapters 39 — 41 of this title, to

be made to the temporary disability insurance fund or to the temporary disability insurance reserve

fund.

     (ii) Wherever and whenever in chapters 39 — 41 of this title, the words “contribution”

and/or “contributions” appear, those words shall be construed to mean the “taxes,” as defined in

this subdivision, that are the money payments required by those chapters to be made to the

temporary disability insurance fund or to the temporary disability insurance reserve fund.

     (22) “Wages” has the same definition as contained in chapter 42 of this title; provided, that

no individual shall be denied benefits under chapters 39 — 41 of this title because his or her

employer continues to pay to that individual his or her regular wages, or parts of them, while he or

she is unemployed due to sickness and unable to perform his or her regular or customary work or

services. The amount of any payments, whether or not under a plan or system, made to or on behalf

of an employee by his or her employer after the expiration of six (6) calendar months following the

last calendar month in which the employee performed actual bona fide personal services for his or

her employer, shall not be deemed to be wages either for the purpose of paying contributions

thereon under chapter 40 of this title, or for the purpose of being used as a basis for paying benefits

under chapter 41 of this title.

     (23) “Week” has the same definition as contained in chapter 42 of this title.

     SECTION 2. Chapter 28-41 of the General Laws entitled "Temporary Disability Insurance

— Benefits" is hereby amended by adding thereto the following section:

     28-41-43. Mandatory coverage of state employees.

     (a) Notwithstanding the provisions of § 28-39-3 to the contrary, effective January 1, 2027,

the State of Rhode Island shall be deemed an employer for purposes of this chapter and shall

participate in the temporary disability insurance program administered by the department of labor

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and training.

     (b) All employees of the State of Rhode Island shall be covered under the temporary

disability insurance program and shall be eligible for benefits in the same manner and subject to

the same conditions as other covered employees under this chapter.

     (c) The state shall remit employer and employee contributions to the temporary disability

insurance fund in accordance with any applicable provision of this chapter or title 28.

     (d) Payroll deductions for employee contributions shall be made in the same manner as

required of other employers subject to this chapter.

     (e) The director of the department of labor and training is authorized to promulgate rules

and regulations necessary to implement the provisions of this section.

     (f) The provisions of this section shall apply notwithstanding the provisions of any

collective bargaining agreement entered into prior to the effective date of this section; provided,

however, that nothing herein shall prohibit the negotiation of supplemental disability benefits

through collective bargaining.

     (g) The general treasurer, in coordination with the department of administration and the

department of labor and training, shall take all administrative steps necessary to ensure

implementation of this section, including modification of payroll systems and contribution

reporting mechanisms.

     SECTION 3. This act shall take effect on January 1, 2027, and shall apply to wages earned

on or after that date.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY

INSURANCE -- GENERAL PROVISIONS

***

     This act would provide that Rhode Island state employees be eligible for temporary

disability insurance effective January 1, 2027.

     This act would take effect on January 1, 2027, and would apply to wages earned on or after

that date.

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