2012 -- H 7562

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LC01419

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY

INSURANCE

     Introduced By: Representatives Cimini, Hull, and Bennett

     Date Introduced: February 15, 2012

     Referred To: House Labor

It is enacted by the General Assembly as follows:

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

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Disability Insurance – General Provisions” is hereby amended to read as follows:

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     28-39-2. Definitions. – The following words and phrases, as used in chapters 39 – 41 of

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this title, have the following meanings unless the context clearly requires otherwise:

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     (1) "Average weekly wage" means the amount determined by dividing the individual's

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

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number of that individual's credit weeks within the base period;

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     (2) "Base period" with respect to an individual's benefit year when the benefit year begins

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

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calendar quarters immediately preceding the first day of an individual's benefit year; provided,

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

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and for any individual deemed monetarily ineligible for benefits under the "base period" as

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defined in this subdivision, the department shall make a re-determination of entitlement based

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upon an alternate base period which consists of the last four (4) completed calendar quarters

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immediately preceding the first day of the claimant's benefit year. Notwithstanding anything

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contained to the contrary in this subdivision, the base period shall not include any calendar

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quarter previously used to establish a valid claim for benefits; provided, however, that the "base

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period" with respect to members of the United States military service, the Rhode Island National

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Guard, or a United States military reserve force, and who served in a United States declared

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combat operation during their military service, who file a claim for benefits following their

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release from their state or federal active military service and who are deemed to be monetarily

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ineligible for benefits under this section, shall mean the first four (4) of the most recently

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completed five (5) calendar quarters immediately preceding the first day the individual was called

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into that state or federal active military service; provided, that for any individual deemed

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monetarily ineligible for benefits under the "base period" as defined in this section, the

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department shall make a re-determination of entitlement based upon an alternative base period

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

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

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

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

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

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

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     (4) "Benefit credits" means the total amount of money payable to an individual as

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benefits, as provided in section 28-41-7;

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     (5) "Benefit rate" means the money payable to an individual as compensation, as

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provided in chapters 39 – 41 of this title, for his or her wage losses with respect to any week

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during which his or her unemployment is caused by sickness;

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

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

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

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

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

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1990, the benefit year shall be fifty-three (53) consecutive calendar weeks if the subsequent filing

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

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

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

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

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

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

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     (7) "Board" means the board of review as created under chapter 19 of title 42;

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     (8) "Calendar quarter" has the same definition as contained in chapter 42 of this title;

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     (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

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defined in chapter 12 of this title, for performing services in employment for one or more

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employers subject to chapters 39 – 41 of this title;

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     (10) "Director" means the director of the department of labor and training;

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

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to chapters 39 – 41 of this title and in employment subject to those chapters;

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     (12) "Employer" means any employing unit that is an employer under chapters 42 – 44 of

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this title;

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

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

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

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     (14) "Employment" has the same definition as contained in chapter 42 of this title;

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     (15) "Employment office" has the same definition as contained in chapter 42 of this title;

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

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this chapter;

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

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

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

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

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if totally unemployed due to sickness and eligible.

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

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

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

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

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week, and "services" includes only that part of any work for which remuneration in excess of

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

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multiple of one dollar ($1.00), to which the individual would be entitled if totally unemployed

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

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

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

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subdivision for that week.

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

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section 28-39-7;

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

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

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or profits;

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

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

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unable to perform his or her regular or customary work or services;

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     (21) "Taxes" means the money payments required by chapters 39 – 41 of this title, to be

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

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fund.

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     (ii) Wherever and whenever in chapters 39 – 41 of this title, the words "contribution"

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

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

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

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

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

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

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

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

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

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following the last calendar month in which the employee performed actual bona fide personal

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services for his or her employer, shall not be deemed to be wages either for the purpose of paying

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

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paying benefits under chapter 41 of this title; and

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

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     SECTION 2. Sections 28-41-9 and 28-41-11 of the General Laws in Chapter 28-41

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entitled “Temporary Disability Insurance –Benefits” are hereby amended to read as follows:

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     28-41-9. Lag day benefits. – (a) An individual who, having been unemployed due to

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sickness, has served a waiting period, and who is in receipt of benefits under this chapter, returns

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to work prior to the end of the immediately succeeding week, shall be entitled to one-fifth ( 1/5)

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of his or her benefit rate for each day of unemployment due to sickness in which work is

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ordinarily performed in the occupation in which he or she is employed during the week in which

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he or she returns to work, figured to the highest dollar, including any holiday when the

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performance of services is waived by his or her employer; provided, that in no case shall any

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individual be entitled to more than four-fifths (4/5) of his benefit rate, figured to the highest

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dollar, for that week.

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     (b) An individual who, having been unemployed due to sickness, served a waiting period

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and, at a later date during his or her benefit year, again becomes unemployed due to sickness, and

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refiles his or her claim for benefits, shall, if his or her first day of unemployment begins on a day

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subsequent to the first day of any week, be entitled to one-fifth ( 1/5) of his or her benefit rate for

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each day in that week in which work is ordinarily performed in the occupation in which he or she

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was last employed, including any holiday when the performance of services is waived by his or

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her employer, figured to the highest dollar, if his or her unemployment continues for seven (7)

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consecutive calendar days, including the first day of unemployment due to sickness for which he

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or she has refiled his or her claim. In no case shall any individual be entitled to more than four-

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fifths ( 4/5) of his or her benefit rate, figured to the highest dollar, for the week in which his or

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her unemployment begins on a day subsequent to the first day of that week.

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     28-41-11. Eligibility. – (a) For benefit years beginning on or after July 1, 1981 and prior

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to October 7, 1990, an individual shall be deemed eligible for benefits for any given week of his

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or her unemployment due to sickness only if he or she has, within the base period immediately

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preceding the benefit year in which that week of unemployment occurs, earned wages amounting

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to at least twenty (20) times the minimum hourly wage as defined in chapter 12 of this title, in

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each of at least twenty (20) weeks or, in the alternative, in an amount equal to three (3) times the

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total minimum amount required in this chapter.

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     (b) In order to be deemed eligible for benefits, an individual whose benefit year begins on

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or after October 7, 1990: must have been paid wages in:

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     (1) Any one calendar quarter of the base period which are at least two hundred (200)

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times the minimum hourly wage, as defined in chapter 12 of this title, and must have been paid

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wages in the base period amounting to at least one and one-half (1 1/2) times the wages paid to

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the individual in that calendar quarter of the base period in which the individual's wages were

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highest; provided, that the minimum amount of total base period wages paid to the individual

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must be at least four hundred (400) times the minimum hourly wage, as defined in chapter 12 of

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this title. The base period wages must have been paid to the individual for performing services in

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employment for one or more employers subject to chapters 39 – 41 of this title; or, in the

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alternative,

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     (2) The base period for performing services in employment for one or more employers

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subject to chapters 39 – 41 of this title amounting to at least three (3) times the total minimum

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amount required in subdivision (1) of this subsection.

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     (c) In addition to the provisions of subsection (b) of this section, for benefit years that

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begin on or after July 1, 2012, an individual must have been unemployed due to sickness for at

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least seven (7) consecutive days in order to be eligible for benefits.

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     SECTION 3. Section 28-41-12 of the General Laws in Chapter 28-41 entitled

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“Temporary Disability Insurance –Benefits” is hereby repealed.

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     28-41-12 Waiting period. – (a) For benefit years beginning on or after July 6, 2008 the

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waiting period of any individual shall be either:

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     (1) Seven (7) consecutive days commencing with the Sunday of the week in which the

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claimant filed a claim for benefits, during which that individual is unemployed due to sickness

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and during which the individual earned remuneration in an amount less than his or her weekly

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benefit rate for work performed during that week prior to his or her unemployment due to

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sickness; or

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     (2) Seven (7) consecutive days, commencing with the Sunday of the week following the

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week in which the individual filed a claim for benefits, during which the individual is

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unemployed due to sickness and the individual earned remuneration in an amount greater than or

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equal to his or her weekly benefit rate for work performed during that week prior to filing a claim

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for benefits.

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     (b) No waiting period shall be credited to any individual unless he or she has filed a valid

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claim in accordance with regulations adopted as prescribed in this title.

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     (c) Benefits shall be payable to an eligible individual only for those weeks of his or her

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unemployment due to sickness within a benefit year which occur subsequent to one waiting

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period, which shall be served at any time during the benefit year. If the first week of an

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individual's unemployment due to sickness which occurs within his or her new benefit year is

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immediately preceded by a week for which he or she is in receipt of benefits (including lag day

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payments as provided in section 28-41-9) for total or partial unemployment due to sickness under

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chapters 39 – 41 of this title, or under similar federal provisions, he or she shall not be required to

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serve a waiting period for that new benefit year.

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     (d) Except as provided in subsection (c), no period of unemployment due to sickness

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shall be counted towards an individual's required waiting period if with respect to any portion of

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that period of unemployment due to sickness, benefits have been paid under the employment

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security or temporary disability insurance acts of any other state or of any similar acts of the

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United States or of any foreign government.

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     (e) If an individual is unemployed due to sickness for the seven (7) consecutive days, as

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provided for in subsection (a), and his or her sickness continues for at least an additional twenty-

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one (21) consecutive days, he or she shall be eligible to receive benefits for the waiting period of

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seven (7) consecutive days.

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     SECTION 4. This act shall take effect on July 1, 2012.

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LC01419

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY

INSURANCE

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     This act would eliminate the seven day waiting period that an individual must currently

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serve prior to receiving temporary disability insurance benefits. Individuals would be eligible for

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temporary disability insurance benefits beginning with the first day of their unemployment due to

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sickness if they are unemployed due to sickness for at least seven consecutive days.

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     This act shall take effect on July 1, 2012.

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LC01419

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