2019 -- H 5825

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LC002044

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - TEMPORARY DISABILITY

BENEFITS AND CONTRIBUTIONS

     

     Introduced By: Representatives Azzinaro, Corvese, Costantino, Solomon, and Phillips

     Date Introduced: March 08, 2019

     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.

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

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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 including any sales commission earned for services performed in employment within

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his or her base period by the 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

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an 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 § 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

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of 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 §§ 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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§ 28-39-7;

 

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     (19) "Sales commissions" mean an extra amount of money that is paid to a sales person,

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based upon the sales that they have generated, in addition to their wages and salary.

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     (19)(20) "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)(21) "Sickness". An individual shall be deemed to be sick in any week in which,

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

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

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     (21)(i)(22)(i) "Taxes" means the money payments required by chapters 39 -- 41 of this

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title, to be made to the temporary disability insurance fund or to the temporary disability

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insurance reserve 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)(23) "Wages" has the same definition as contained in chapter 42 of this title except

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that it shall include "sales commissions" as defined herein; provided, that no individual shall be

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denied benefits under chapters 39 -- 41 of this title because his or her employer continues to pay

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to that individual his or her regular wages, or parts of them, while he or she is unemployed due to

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sickness and unable to perform his or her regular or customary work or services. The amount of

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any payments, whether or not under a plan or system, made to or on behalf of an employee by his

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or her employer after the expiration of six (6) calendar months following the last calendar month

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in which the employee performed actual bona fide personal services for his or her employer, shall

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not be deemed to be wages either for the purpose of paying contributions thereon under chapter

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40 of this title, or for the purpose of being used as a basis for paying benefits under chapter 41 of

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this title; and

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

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     SECTION 2. Section 28-40-1 of the General Laws in Chapter 28-40 entitled "Temporary

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

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

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

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greater of thirty-eight thousand dollars ($38,000) or the annual earnings needed by an individual

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to qualify for the maximum weekly benefit amount and the maximum duration under chapters 39

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-- 41 of this title. That taxable wage base shall be computed as follows: Every September 30, the

 

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maximum weekly benefit amount in effect as of that date shall be multiplied by thirty (30) and

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the resultant product shall be divided by thirty-six hundredths (.36). If the result thus obtained is

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not an even multiple of one hundred dollars ($100), it shall be rounded upward to the next higher

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even multiple of one hundred dollars ($100). That taxable wage base shall be effective for the

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calendar year beginning on the next January 1.

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

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

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rate times the wages, including sales commissions, as defined in § 28-39-2 and paid by the

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employer to the employee up to the taxable wage base as defined and computed in subsection (a)

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of this section. The employee contribution rate for the following calendar year shall be

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determined by computing the fund cost rate on or before November 15 of each year as follows:

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

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

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

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

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

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

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

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disbursements from the fund for the six (6) month period ending on that September 30, that

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difference shall be added to the total disbursements for the twelve (12) month period ending

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September 30 for the purpose of computing the fund cost rate, and if the resulting fund cost rate is

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not an exact multiple of one-tenth of one percent (0.1%) it shall be rounded to the nearest

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multiple of one-tenth of one percent (0.1%).

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     SECTION 3. Section 28-41-2 of the General Laws in Chapter 28-41 entitled "Temporary

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Disability Insurance - Benefits" is hereby amended to read as follows:

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     28-41-2. Wages included for benefit purposes.

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     Notwithstanding any provisions of chapters 39 -- 41 of this title to the contrary, "wages"

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as used in the phrase "wages for employment from employers", including sales commissions, as

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defined in § 28-39-2 and means, with reference to the benefits provisions of chapters 39 -- 41 of

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this title, only those wages which are paid subsequent to the date upon which the employing unit,

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by whom those wages were paid, has satisfied the conditions of § 28-39-2 (12) with respect to

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becoming an employer subject to those chapters. No individual shall be denied benefits under

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chapters 39 -- 41 of this title because his or her employer continued to pay to that individual his

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or her regular wages, or parts of them, while he or she was sick and unable to perform his or her

 

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regular or customary work or services. The amount of any payments, whether or not under a plan

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or system, made to or on behalf of an employee by his or her employer after the expiration of six

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(6) calendar months following the last calendar month in which the employee performed actual

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bona fide personal services for that employer, shall not be deemed to be wages for the purpose of

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being used as a basis for paying benefits under chapter 41 of this title.

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     SECTION 4. 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

BENEFITS AND CONTRIBUTIONS

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     This act would require temporary disability contributions and benefits to be calculated

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based upon an employee's wages and salaries, that shall also include any sales commissions

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earned.

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     This act would take effect upon passage.

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