2018 -- S 2470

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LC004598

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY

INSURANCE

     Introduced By: Senators Goldin, P Fogarty, Miller, Goodwin, and Lynch Prata

     Date Introduced: February 15, 2018

     Referred To: Senate Labor

     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 For tax years prior to 2019, the taxable wage base under this chapter for each

calendar year shall be equal to the greater of thirty-eight thousand dollars ($38,000) 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.

     For tax year 2019 and subsequent years, the taxable wage base shall be equal to 1.443

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

duration under chapters 39-41 of this title. The annual earnings needed by an individual to

qualify for the maximum weekly benefit duration shall be computed as follows: Every

September 30, the maximum weekly benefit amount in effect as of the 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 (12) month

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

wages paid by employers during the twelve (12) month 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 (6) month period ending on that September 30, that

difference shall be added to the total disbursements for the twelve (12) month 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. Section 28-41-5, 28-41-34 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.

     (a) (1) Benefit rate. For claimants whose high quarter average hourly wage is greater than

two (2) times the minimum wage, the The benefit rate payable under this chapter to any eligible

individual with respect to any week of his or her unemployment due to sickness due to reasons

allowed under this chapter, when that week occurs within a benefit year, shall be, for benefit

years beginning on or after October 7, 1990, four and sixty-two hundredths percent (4.62%) 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. For claimants whose high

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quarter average hourly wage is less than or equal to two (2) times the minimum wage, the benefit

rate payable under this chapter to any eligible individual with respect to any week of their

unemployment due to reasons allowed under this chapter, when that week occurs within the

benefit year, shall be, for benefit years beginning on or after January l, 2019, 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. 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 due to reasons allowed under this chapter 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 ten dollars ($10.00) or seven 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. However, in no instance shall the individual's weekly

benefit amount including both the benefit rate and dependents' allowance exceed that individual's

average weekly wage in the base period. 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 his or her claim to it to the satisfaction of the

director under procedures established by the director.

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     (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 due to reasons allowed under this chapter. For

weeks beginning on or after January 1, 2006, an individual partially unemployed due to sickness

due to reasons allowed under this chapter and otherwise eligible in any week shall be paid

sufficient benefits with respect to that week, so that his or her wages, rounded to the next higher

multiple of one dollar ($1.00), and his or her benefits combined will equal in amount the weekly

benefit rate to which he or she would be entitled if totally unemployed due to sickness due to

reasons allowed under this chapter in that week; provided that an individual must have been

totally unemployed due to sickness due to reasons allowed under this chapter 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.

     28-41-34. Temporary caregiver insurance.

     The purpose of this chapter is to establish, within the state temporary disability insurance

program, a temporary caregiver insurance program to provide wage replacement benefits in

accordance with the provisions of this chapter, to workers who take time off work to care for a

seriously ill child, spouse, domestic partner, sibling, parent, parent-in-law, grandparent,

grandchild, or to bond with a new child.

     Definitions as used in this chapter:

     (1) "Child" means a biological, adopted, or foster son or daughter, a stepson or

stepdaughter, a legal ward, a son or daughter of a domestic partner, or a son or daughter of an

employee who stands in loco parentis to that child.

     (2) "Newborn child" means a child under one year of age.

     (3) "Adopted child" means a child adopted by, or placed for adoption with, the employee.

     (4) "Bonding or bond" means to develop a psychological and emotional attachment

between a child and his or her parent(s) or persons who stand in loco parentis. This shall involve

being in one another's physical presence.

     (5) "Parent" means a biological, foster, or adoptive parent, a stepparent, a legal guardian,

or other person who stands in loco parentis to the employee or the employee's spouse or domestic

partner when he/she was a child.

     (6) "Domestic partner" means a party to a civil union as defined by chapter 15-3.1.

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     (7) "Spouse" means a party in a common law marriage, a party in a marriage conducted

and recognized by another state or country, or in a marriage as defined by chapter 15-3.

     (8) "Grandparent" means a parent of the employee's parent.

     (9) "Parent-in-law" means the parent of the employee's spouse or domestic partner.

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

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

     (11) "Serious health condition" means any illness, injury, impairment, or physical or

mental condition that involves inpatient care in a hospital, hospice, residential health care facility,

or continued treatment or continuing supervision by a licensed health care provider.

     (12) "Department" means the department of labor and training.

     (13) "Persons who stand in loco parentis" means those with day-to-day responsibilities to

care for and financially support a child or, in the case of an employee, who had such

responsibility for the employee when the employee was a child. A biological or legal relationship

shall not be required

     (14) "Sibling" means a brother or sister, whether related through half blood, whole

blood or adoption, a foster sibling, or a stepsibling.

     (15) " Grandchild" means the child of the employee's child.

     28-41-35. Benefits.

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

temporary caregiver benefits for any week in which he or she is unable to perform his or her

regular and customary work because he or she is:

     (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 subdivision 28-41-

36(c)(1); or

     (2) Caring for a child, a 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. Employees may use accrued sick time during 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

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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.

     (d) Temporary caregiver benefits may be available to any individual exercising his or her

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. 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 For benefit years beginning January 1, 2014 temporary caregiver benefits

shall be limited to a maximum of four (4) weeks in a benefit year;. For benefit years beginning

January 1, 2019 temporary caregiver benefits shall be limited to a maximum of six (6) weeks in a

benefit year. For benefit years beginning January 1, 2020, temporary caregiver benefits shall be

limited to a maximum of eight (8) weeks.

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

disability benefits which together exceed thirty (30) times his or her weekly benefit rate in any

benefit year.

     (f) Any employee who exercises his or her 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 he or she 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, PL 103-3

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and/or the Rhode Island Parental and Family Medical Leave Act, 28-41 et seq., who exercises his

or her 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 federal Family and Medical

Leave Act (FMLA) P.L. 103-3 and Rhode Island Family Parental and Family 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, PL 103-3 and/or the Rhode Island Parental and

Family Medical Leave Act, 28-41 et seq., who exercises his or her 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.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY

INSURANCE

***

     This act would increase the taxable wage base for temporary disability benefits, and

would increase the benefit rate for individuals earning less than or equal to two (2) times the

minimum wage. Caregivers of a sibling and a grandchild would now be eligible under temporary

caregiver benefits.

     This act would take effect upon passage.

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