2014 -- H 7769

========

LC004934

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY -

GENERAL PROVISIONS

     Introduced By: Representatives Nunes, and Jacquard

     Date Introduced: February 27, 2014

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 28-42-3 of the General Laws in Chapter 28-42 entitled

"Employment Security - General Provisions" is hereby amended to read as follows:

     28-42-3. Definitions. -- The following words and phrases, as used in chapters 42 -- 44 of

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

      (1) "Administration account" means the employment security administration account

established by this chapter;

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

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

number of that individual's credit weeks within his or her base period;

      (3) "Base period", with respect to an individual's benefit year 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. For any individual's benefit year and for any individual deemed

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

department shall make a re-determination of entitlement based upon the alternate base period

which 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, that notwithstanding any provision of chapters 42 -- 44 of this

title to the contrary, for the benefit years beginning on or after October 4, 1992, whenever an

individual who has received workers' compensation benefits is entitled to reinstatement under

section 28-33-47, but the position to which reinstatement is sought does not exist or is not

available, the individual's base period shall be determined as if the individual filed for benefits on

the date of the injury;

      (4) "Benefit" means the money payable to an individual as compensation for his or her

wage losses due to unemployment as provided in these chapters;

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

benefits, as determined by section 28-44-9;

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

provided in chapters 42 -- 44 of this title, for his or her wage losses with respect to any week of

total unemployment;

      (7) "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 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 a

valid claim in accordance with regulations adopted as hereinafter prescribed; provided, that the

benefit year shall be fifty-three (53) weeks if the filing of a new valid claim would result in

overlapping any quarter of the base period of a prior new claim previously filed by the individual.

In no event shall a new benefit year begin prior to the Sunday next following the end of the old

benefit year;

      (8) "Calendar quarter" means the period of three (3) consecutive calendar months ending

March 31, June 30, September 30, and December 31; or the equivalent thereof in accordance with

regulations as subsequently prescribed;

      (9) "Contributions" means the money payments to the state employment security fund

required by those chapters;

      (10) "Credit week" means any week within an individual's base period in which that

individual earned 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 42 -- 44 of this title;

      (11) "Crew leader", for the purpose of subdivision (18) of this section, means an

individual who:

      (i) Furnishes individuals to perform service in agricultural labor for any other person;

      (ii) Pays (either on his or her own behalf or on behalf of that other person) the

individuals so furnished by him or her for the service in agricultural labor performed by them;

LC004934 - Page 2 of 9

and

      (iii) Has not entered into a written agreement with that other person (farm operator)

under which that individual (crew leader) is designated as an employee of that other person (farm

operator).

      (12) "Director" means the head of the department of labor and training or his or her

authorized representative;

      (13) "Domestic service employment". "Employment" includes domestic service in a

private home performed for a person who paid cash remuneration of one thousand dollars

($1,000) or more in any calendar quarter in the current calendar year or the preceding calendar

year to individuals employed in that domestic service;

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

to those chapters and in employment subject to those chapters;

      (15) "Employer" means:

      (i) Any employing unit that was an employer as of December 31, 1955;

      (ii) Any employing unit which for some portion of a day on and after January 1, 1956,

has or had in employment within any calendar year one or more individuals; except, however, for

"domestic service employment", as defined in subdivision (13) of this section;

      (iii) For the effective period of its election pursuant to section 28-42-12, any other

employing unit which has elected to become subject to chapters 42 -- 44 of this title;

      (iv) Any employing unit not an employer by reason of any other paragraph of this

subdivision for which, within either the current or preceding calendar year, service is or was

performed with respect to which that employing unit is liable for any federal tax against which

credit may be taken for contributions required to be paid into this state's employment security

fund; or which, as a condition for approval of chapters 42 -- 44 of this title for full tax credit

against the tax imposed by the Federal Unemployment Tax Act, 26 U.S.C. section 3301 et seq., is

required, pursuant to that act, to be an "employer" under chapters 42 -- 44 of this title;

      (16) "Employing unit" means any person, partnership, association, trust, estate, or

corporation whether domestic or foreign, or its legal representative, trustee in bankruptcy,

receiver, or trustee, or the legal representative of a deceased person, which has, or had in his or

her employ one or more individuals. For the purposes of subdivision (13) of this section a private

home shall be considered an employing unit only if the person for whom the domestic service

was performed paid cash remuneration of one thousand dollars ($1,000) or more in any calendar

quarter in the current calendar year or the preceding calendar year to individuals employed in that

domestic service in that private home;

LC004934 - Page 3 of 9

      (17) (i) "Employment", subject to sections 28-42-4 -- 28-42-10, means service, including

service in interstate commerce, performed for wages or under any contract of hire, written or oral,

express or implied; provided, that service performed shall also be deemed to constitute

employment for all the purposes of chapters 42 -- 44 of this title, if performed by an individual in

the employ of a nonprofit organization as described in subdivision (24) of this section except as

provided in section 28-42-8(7).

      (ii) Notwithstanding any other provisions of this section, "Employment" also means

service with respect to which a tax is required to be paid under any federal law imposing a tax

against which credit may be taken for contributions required to be paid into this state's

employment security fund or which as a condition for full tax credit against the tax imposed by

the Federal Unemployment Tax Act is required to be covered under chapters 42 -- 44 of this title;

      (18) "Employment -- Crew leader". For the purposes of subdivision (14) of this section:

      (i) Any individual who is a member of a crew furnished by a crew leader to perform

service in agricultural labor for any other person shall be treated as an employee of that crew

leader if:

      (A) That crew leader holds a valid certificate of registration under the Migrant and

Seasonal Agricultural Worker Protection Act, 29 U.S.C. section 1801 et seq., or substantially all

members of that crew operate or maintain tractors, mechanized harvesting, or crop-dusting

equipment, or any other mechanized equipment, which is provided by that crew leader; and

      (ii) That individual is not an employee of that other person within the meaning of

subdivision (14) of this section; and

      (iii) In the case of any individual who is furnished by a crew leader to perform service in

agricultural labor for any other person and who is not treated as an employee of that crew leader:

      (A) That other person and not the crew leader shall be treated as the employer of that

individual; and

      (B) That other person shall be treated as having paid cash remuneration to that individual

in an amount equal to the amount of cash remuneration paid to that individual by the crew leader

(either on his or her own behalf or on behalf of that other person) for the service in agricultural

labor performed for that other person;

      (19) "Employment office" means a free public employment office, or its branch,

operated by the director or by this state as part of a system of free public employment offices, or

any other agency that the director may designate with the approval of the Social Security

Administration;

      (20) "Fund" means the employment security fund established by this chapter;

LC004934 - Page 4 of 9

      (21) "Governmental entity" means state and local governments in this state and includes

the following:

      (i) The state of Rhode Island or any of its instrumentalities, or any political subdivision

of the state or any of its instrumentalities;

      (ii) Any instrumentality of more than one of these entities; or

      (iii) Any instrumentality of any of these entities and one or more other states or political

subdivisions;

      (22) "Hospital" means an institution that has been licensed, certified, or approved by the

department of health as a hospital;

      (23) (i) "Institution of higher education" means an educational institution in this state

which:

      (A) Admits as regular students only individuals having a certificate of graduation from a

high school, or the recognized equivalent of such certificate;

      (B) Is legally authorized within this state to provide a program of education beyond high

school;

      (C) Provides:

      (I) An educational program for which it awards a bachelor's or higher degree, or a

program that is acceptable for full credit toward such a degree;

      (II) A program of post-graduate or post-doctoral studies; or

      (III) A program of training to prepare students for gainful employment in a recognized

occupation; and

      (D) Is a public or other non-profit institution.

      (ii) Notwithstanding any of the preceding provisions of this subdivision, all colleges and

universities in this state are institutions of higher education for purposes of this section;

      (24) "Nonprofit organization" means an organization or group of organizations as

defined in 26 U.S.C. section 501(c)(3) which is exempt from income tax under 26 U.S.C. section

501(a);

      (25) (i) "Partial unemployment". An employee shall be deemed partially unemployed in

any week of less than full-time work if he or she fails to earn in wages for that week an amount

equal to the weekly benefit rate for total unemployment to which he or she would be entitled if

totally unemployed and eligible.

      (ii) For the purposes of this subdivision and subdivision (27) 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

LC004934 - Page 5 of 9

($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 equal to or greater than his or her weekly benefit rate to receive benefits under this

subdivision for that week.

      (iii) Notwithstanding anything contained to the contrary in this subdivision, "Services",

as used in this subdivision and in subdivision (27) of this section, does not include services

rendered by an individual under the exclusive supervision of any agency of this state, or any of its

political subdivisions, by which the services are required solely for the purpose of affording

relief, support, or assistance to needy individuals performing those services, or services

performed by members of the national guard and organized reserves in carrying out their duties in

weekly drills as members of those organizations. "Wages", as used in this subdivision and in

subdivision (27) of this section, does not include either remuneration received by needy

individuals for rendering the aforementioned services when that remuneration is paid exclusively

from funds made available for that purpose out of taxes collected by this state or any of its

political subdivisions, or remuneration received from the federal government by members of the

national guard and organized reserves, as drill pay, including longevity pay and allowances;

      (26) "Payroll" means the total amount of all wages paid by the employer to his or her

employees for employment;

      (27) "Total unemployment." An individual shall be deemed totally unemployed in any

week in which he or she performs no services (as used in subdivision (25) of this section) and for

which he or she earns no wages (as used in subdivision (25) of this section), and in which he or

she cannot reasonably return to any self-employment in which he or she has customarily been

engaged;

      (28) "Wages" means all remuneration paid for personal services on or after January 1,

1940, including commissions and bonuses and the cash value of all remuneration paid in any

medium other than cash, and all other remuneration which is subject to a tax under a federal law

imposing a tax against which credit may be taken for contributions required to be paid into a state

unemployment fund. Gratuities customarily received by an individual in the course of his or her

employment from persons other than his or her employing unit shall be treated as wages paid by

his or her employing unit. The reasonable cash value of remuneration paid in any medium other

LC004934 - Page 6 of 9

than cash, and the reasonable amount of gratuities, shall be estimated and determined in

accordance with rules prescribed by the director; except that for the purpose of this subdivision

and of sections 28-43-1 -- 28-43-14, this term does not include:

      (i) That part of remuneration which is paid by an employer to an individual with respect

to employment during any calendar year, after remuneration equal to the amount of the taxable

wage base as determined in accordance with section 28-43-7 has been paid during that calendar

year by the employer or his or her predecessor to that individual; provided, that if the definition of

"Wages" as contained in the Federal Unemployment Tax Act is amended to include remuneration

in excess of the taxable wage base for that employment, then, for the purposes of sections 28-43-1

-- 28-43-14, "Wages" includes the remuneration as previously set forth up to an amount equal to

the dollar limitation specified in the federal act. For the purposes of this subdivision,

"Employment" includes services constituting employment under any employment security law of

another state or of the federal government;

      (ii) The amount of any payment made to, or on behalf of, an employee under a plan or

system established by an employer which makes provision for his or her employees generally or

for a class or classes of his or her employees (including any amount paid by an employer or an

employee for insurance or annuities, or into a fund, to provide for any such payment), on account

of:

      (A) Retirement;

      (B) Sickness or accident disability;

      (C) Medical and hospitalization expenses in connection with sickness or accident

disability; or

      (D) Death; provided, that the employee has not the:

      (I) Option to receive, instead of provision for that death benefit, any part of that payment

or, if that death benefit is insured, any part of the premiums (or contributions to premiums) paid

by his or her employer; and

      (II) Right, under the provisions of the plan or system or policy of insurance providing for

that death benefit, to assign that benefit, or to receive a cash consideration in lieu of that benefit

either upon his or her withdrawal from the plan or system providing for that benefit or upon

termination of the plan or system or policy of insurance, or of his or her employment with that

employer.

      (E) The payment by an employer (without deduction from the remuneration of the

employee) of:

      (I) The tax imposed upon an employee under 26 U.S.C. section 3101; or

LC004934 - Page 7 of 9

      (II) Any payment required from an employee under chapters 42 -- 44 of this title.

      (iii) Any amount paid by an employee or an amount paid by an employer under a benefit

plan organized under Section 125 of the Internal Revenue Code [26 U.S.C. section 125].

     (iv) That part of remuneration which is paid by an employer to an individual in excess of

remuneration paid for work performed for benefits such as remuneration based upon the

prevailing wage rate applicable to state and/or federal contracts.

      (29) "Week" means the seven (7) day calendar week beginning on Sunday at 12:01 A.M.

and ending on Saturday at 12:00 A.M. midnight.

     SECTION 2. This act shall take effect on January 1, 2015.

========

LC004934

========

LC004934 - Page 8 of 9

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY -

GENERAL PROVISIONS

***

     This act would exclude earnings paid to employees for work performed reflecting

benefits paid as earnings based upon the prevailing wage rate applicable to state and/or federal

contracts from the calculation of an employer's taxable wage base upon which its contribution to

the unemployment fund is determined.

     This act would take effect on January 1, 2015.

========

LC004934

========

LC004934 - Page 9 of 9