It is enacted by the General Assembly as follows
SECTION 1. Sections 28-43-2, 28-43-3 and 28-43-8 of the General Laws in Chapter 28-43 entitled "Employment Security -- Contributions" are hereby amended to read as follows:
28-43-2. Balancing account -- Credits and charges. -- Subsequent to the establishment of the balancing account as set forth in section 28-43-1(1), the credits and charges to that account shall be determined by the director as follows:
(1) Credits to the balancing account:
(i) All interest earnings received by the fund;
(ii) All transfers to the credit of the account of this state in the unemployment trust fund under 42 U.S.C. section 903(a);
(iii) Any plus balance remaining to the credit of an employer's account after he or she has ceased to be subject to chapters 42 -- 44, of this title;
(iv) The entire amount credited to the balancing account under section 28-43-9 relating to the balancing rate;
(v) An amount equal to the amount of any restitution by an employee of benefits, whether that restitution is in cash or in the form of offset against benefits otherwise due, when that restitution is made;
(vi) Any deposits made by employers in connection with an appeal under section 28-44-39, which are not returnable;
(vii) The amount reimbursed or advanced to this state as the federal share of extended benefits paid to individuals under the provisions of section 28-44-62; and
(viii) The amount reimbursed to this state in accordance with the provisions of section 121 of United States P.L. 94-566.
(2) Charges to the balancing account;
(i) Any minus balance of an employer's account after he or she has ceased to be subject to this title, together with an amount equal to benefits thereafter paid based on wages reported by that employer;
(ii) Any disbursements from the fund which are not chargeable to employer accounts;
(iii) Any benefit payments paid to a claimant and charged to an employer's account after a hearing in which the employer appeared and contested the award which is thereafter finally disallowed on appeal, which the charges to the employer's account shall be cancelled;
(iv) Any benefit payments based on determinations by the administrative agencies of other states;
(v) Dependent's allowances not otherwise chargeable to an employer's account paid under section 28-44-6 for benefit years beginning subsequent to September 30, 1985.
(vi) Benefits not chargeable to any individual employer's account;
(vii) Any benefit payments paid to an individual who has left his or her employment for reasons which have been determined not to have been connected with the employment; provided, however, that such benefits paid to an individual who leaves work pursuant to a retirement plan, system, or program in accordance with the provisions of section 28-44-17 of this title shall be charged in accordance with the provisions of section 28-43-3(2)(ii);
(viii) Any benefits paid for benefit years beginning subsequent to September 30, 1985 to an individual in accordance with the provisions of section 28-44-62 and not otherwise chargeable to an employer's account.
(ix) Any benefits paid to an individual in accordance with the provisions of section 28-44-3.1 to the extent that the employment security fund is reimbursed for the benefits pursuant to section 121 of United States P.L. 94-566;
(x) The foregoing charges to the balancing account shall be limited to benefits paid based on service with an employer required to pay contributions under the provisions of chapters 42 -- 44, of this title.
(xi) Any benefits paid for benefit years beginning subsequent to
July 7, 1996 to an individual {DEL employed DEL} {ADD unemployed ADD} as a result
of physical damage to the real property at the employer's usual place
of business caused by severe weather conditions, including, but not
limited to, hurricanes, snowstorms, ice storms or flooding, or fire
except where caused by the employer.
28-43-3. Employer's accounts -- Credits and charges. -- Subsequent to the establishment of a separate employer's account for each employer subject to chapters 42, 43, and 44 of this title, as set forth in section 28-43-1(4), the credits and charges to each employer's account, exclusive of the state of Rhode Island, its political subdivisions, and their instrumentalities, shall be determined as follows:
(1) Credits to each employer's account:
(i) After the September 30, 1958 computation date all contributions required under section 28-43-8 and paid by each employer.
(ii) All surcharges required and paid under section 28-43-4.
(2) Charges to each employer's account:
(i) Refunds of overpayments under section 28-43-13, as of the date refunded;
(ii) For benefit years beginning subsequent to September 30, 1993, an amount equal to the benefits provided in sections 28-44-6(a) and (b), 28-44-7, and 28-44-8, and paid to each individual with respect to a benefit year, as of the date paid. Those benefits shall be charged to the account of the most recent base period employer, as defined in section 28-43-1(7); provided, however, that if a claimant works for two or more employers concurrently, either full-time or part-time, and becomes unemployed on the same day from more than one employer, any benefits paid as a result of the unemployment shall be charged to the employers' accounts proportionately based upon the ratio of base period wages paid by each employer to the total base period wages paid by the concurrent employers from whom the claimant became separated from employment. Provided, however, that no charge for benefits paid under section 28-44-7 shall be made against the account of any employer who shows to the satisfaction of the director that he or she has continued to employ the individual during the weeks of his or her claim to the same extent that he or she had employed him or her during that individual's base period, and those benefits, if not chargeable to the most recent base period employer, shall be charged to the balancing account. {ADD Provided, further, that where an individual leaves work voluntarily without good cause, is discharged for proved misconduct connected with his or her work, or refuses suitable work, and then becomes unemployed after performing service in employment from a subsequent employer, any benefits paid to that individual shall be charged to the account of the last separating employer. ADD}
(iii) If any base period employer whether or not he or she was the most recent shows to the satisfaction of the director that the individual who is in receipt of benefits became separated from his last employment with that employer for reasons which did result or would have resulted in a disqualification under sections 28-44-17 or 28-44-18 had that base period employer been his or her most recent, those benefits shall be charged to the balancing account.
(iv) The entire amount charged to the employer's account under section 28-43-9 relating to the balancing rate.
(v) Whenever the provisions in this section specify that an employer's account shall not be charged, that noncharging shall be limited to benefits paid based on service with an employer required to pay contributions under the provisions of chapters 42 -- 44, of this title.
(vi) An amount equal to the benefits provided in section 28-44-62 and paid to each individual with respect to a benefit year as of the date paid minus the proportionate share of those benefits for which the state has been or will be reimbursed by the federal government. The federal share of any payments shall be charged to the balancing account and federal reimbursements shall be credited to the balancing account.
(vii) Whenever any benefits are paid for benefit years beginning subsequent to July 7, 1996 to an individual unemployed as a result of physical damage to the real property at the employer's usual place of business caused by severe weather conditions, including, but not limited to, hurricanes, snowstorms, ice storms or flooding, or fire except where caused by the employer, those benefits shall be charged to the balancing account.
28-43-8. Experience rates -- Tables. -- (a)(1) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is eleven and five-tenths percent (11.5%) or more of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule A below.
(2) Whenever, as of September 30, 1987, or any computation date thereafter, the amount in the employment security fund available for benefits is eleven percent (11.0%) but less than eleven and five-tenths percent (11.5%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule B below.
(3) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is ten and five-tenths percent (10.5%) but less than eleven percent (11.0%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule C below.
(4) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is nine and five-tenths percent (9.5%) but less than ten and five-tenths percent (10.5%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule D below.
(5) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is eight and five-tenths (8.5%) but less than nine and five-tenths percent (9.5%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule E below.
(6) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is six and five-tenths percent (6.5%) but less than eight and five-tenths percent (8.5%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule F below.
(7) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is five and five-tenths percent (5.5%) but less than six and five-tenths percent (6.5%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule G below.
(8) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is five percent (5.0%) but less than five and five-tenths percent (5.5%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule H below.
(9) Whenever, as of September 30, 1987 or any computation date thereafter, the amount in the employment security fund available for benefits is less than five percent (5.0%) of taxable wages as determined in section 28-43-1(9), an experience rate for each eligible employer for the immediately following calendar year shall be determined in accordance with schedule I below.
(10) Whenever the amount in the employment security fund available for benefits, net of obligations owed to the federal government, is less than zero at the end of the second month in any calendar quarter, every employer subject to the contribution provisions of this chapter shall be required to pay a surtax of three-tenths of one percent (.3%) of the individual employer's taxable wages for the calendar quarter, in addition to any other contribution which the employer is required to make under any other provision of this chapter.
SCHEDULES
| Schedule A | Schedule B | Schedule C | Schedule D | Schedule E | Schedule F | Schedule G | Schedule H | Schedule I | Employ- er's Account Reserve Percent- ages | Reserve Ratio of Fund 11.5% or more | Reserve Ratio of Fund 11.0% but less than 11.5% | Reserve Ratio of Fund 10.5% but less than 11.0% | Reserve Ratio of Fund 9.5% but less than 10.5% | Reserve Ratio of Fund 8.5% but less than 9.5% | Reserve Ratio of Fund 6.5% but less than 8.5% | Reserve Ratio of Fund 5.5% but less than 6.5% | Reserve Ratio of Fund 5.0% but less than 5.5% | Reserve Ratio of Fund under 5.0% |
Positive Percent- ages |
| 17.00 and over | 0.6 | 0.7 | 0.6 | 0.9 |
1.0 | 1.2 | 1.5 | 1.7 | 1.9 |
| 15.50 to 16.99 | 0.8 | 0.9 | 1.0 | 1.1 | 1.3 | 1.5 | 1.8 | 2.1 | 2.3 |
| 14.00 to 15.49 | 0.9 | 1.0 | 1.2 | 1.3 | 1.5 | 1.7 | 2.0 | 2.3 | 2.6 |
| 12.50 to 13.99 | 1.1 | 1.2 | 1.4 | 1.5 | 1.7 | 2.0 | 2.3 | 2.6 | 2.9 |
| 11.00 to 12.49 | 1.3 | 1.4 | 1.6 | 1.7 | 1.9 | 2.2 | 2.5 | 2.8 | 3.1 |
| 9.50 to 10.99 | 1.5 | 1.7 | 1.8 | 1.9 | 2.1 | 2.4 | 2.7 | 3.0 | 3.3 |
| 8.00 to 9.49 | 1.7 | 1.9 | 2.0 | 2.2 | 2.4 | 2.7 | 2.9 | 3.2 | 3.5 |
| 6.50 to 7.99 | 1.9 | 2.1 | 2.3 | 2.5 | 2.6 | 2.9 | 3.1 | 3.4 | 3.7 |
| 5.00 to 6.49 | 2.1 | 2.3 | 2.5 | 2.7 | 2.8 | 3.1 | 3.4 | 3.6 | 3.9 |
| 3.50 to 4.99 | 2.3 | 2.5 | 2.7 | 2.9 | 3.0 | 3.3 | 3.7 | 3.9 | 4.2 |
| 2.00 to 3.49 | 2.5 | 2.7 | 2.9 | 3.2 | 3.3 | 3.6 | 3.9 | 4.2 | 4.5 |
| 0.00 to 1.99 | 2.7 | 3.0 | 3.2 | 3.4 | 3.6 | 3.9 | 4.2 | 4.5 | 4.8 |
| Negative Percent- ages | |||||||||
| - 0.01 to - 1.99 | 3.0 | 3.3 | 3.5 | 3.8 | 4.2 | 4.5 | 4.8 | 5.1 | 5.4 |
| - 2.00 to - 3.99 | 3.3 | 3.5 | 3.8 | 4.1 | 4.5 | 4.8 | 5.1 | 5.4 | 5.7 |
| - 4.00 to - 5.99 | 3.6 | 3.8 | 4.1 | 4.4 | 4.8 | 5.1 | 5.4 | 5.8 | 6.0 |
| - 6.00 to - 7.99 | 3.9 | 4.1 | 4.4 | 4.7 | 5.1 | 5.4 | 5.8 | 6.2 | 6.4 |
| - 8.00 to - 9.99 | 4.2 | 4.4 | 4.7 | 5.0 | 5.4 | 5.8 | 6.2 | 6.6 | 6.8 |
| -10.00 to -11.99 | 4.5 | 4.7 | 5.0 | 5.4 | 5.8 | 6.2 | 6.6 | 7.0 | 7.2 |
| -12.00 to -13.99 | 4.8 | 5.0 | 5.4 | 5.8 | 6.2 | 6.6 | 7.0 | 7.4 | 7.6 |
| -14.00 to -15.99 | 5.1 | 5.4 | 5.8 | 6.2 | 6.6 | 7.0 | 7.4 | 7.8 | 8.0 |
| -16.00 to -17.99 | 5.4 | 5.8 | 6.2 | 6.6 | 7.0 | 7.4 | 7.8 | 8.2 | 8.4 |
-18.00 to -19.99 | 5.8 | 6.2 | 6.6 | 7.0 |
7.4 | 7.6 | 8.2 | 8.6 | 8.6 |
-20.00 to -21.99 | 6.2 | 6.6 | 7.0 | 7.4 |
7.6 | 8.2 | 8.6 | 9.0 | 9.2 |
| -22.00 to -23.99 | 6.6 | 7.0 | 7.4 | 7.8 |
8.2 | 8.6 | 9.0 | 9.4 | 9.6 |
| -24.00 and over | 7.0 | 7.4 | 7.8 | 8.2 |
8.6 | 9.0 | 9.4 | 9.8 | 10.0 |
(b) The contribution rate for each employer for a given calendar year shall be determined and the employer notified thereof not later than April 1 next succeeding each computation date. That determination shall be binding unless an appeal is taken in accordance with provisions of section 28-43-13.
SECTION 2. Sections 28-44-17, 28-44-18 and 28-44-20 of the General Laws in Chapter 28-44 entitled "Employment Security -- Benefits" are hereby amended to read as follows:
28-44-17. Voluntary leaving without good cause. -- An
individual who leaves work voluntarily without good cause shall be
ineligible for waiting period credit or benefits until he or she
establishes to the satisfaction of the director that he or she has
subsequent to that leaving had at least {DEL four DEL} {ADD eight ADD} weeks of
work, and in each of those {DEL four DEL} {ADD eight ADD} weeks has had earnings
of at least twenty (20) times the minimum hourly wage as defined in
chapter 42 of this title for performing services in employment for one
or more employers subject to chapters 42-44, inclusive, of this title.
For the purposes of this section, voluntary leaving work with good
cause shall include sexual harassment against members of either sex.
28-44-18. Discharge for misconduct. -- An individual who has
been discharged for proved misconduct connected with his or her work
shall thereby become ineligible for benefits for the week in which
that discharge occurred and until he or she establishes to the
satisfaction of the director that he or she has, subsequent to that
discharge, had at least {DEL four (4) DEL} {ADD eight (8) ADD} weeks of work, and
in each of that {DEL four (4) DEL} {ADD eight (8) ADD} weeks has had earnings of
at least twenty (20) times the minimum hourly wage as defined in
chapter 42 of this title for performing services in employment for one
or more employers subject to chapters 42-44, inclusive, of this title;
provided, however, that any individual who is required to leave his or
her work pursuant to a plan, system or program, public or private,
providing for retirement, and who is otherwise eligible, shall under
no circumstances be deemed to have been discharged for misconduct.
However, if an individual is discharged and a complaint is issued by
the regional office of the National Labor Relations board or the state
labor relations board that an unfair labor practice has occurred in
relation to such discharge the individual shall be entitled to
benefits if otherwise eligible.
28-44-20. Refusal of suitable work. -- (a) If an otherwise
eligible individual fails, without good cause, either to apply for
suitable work when notified by the employment office, or to accept
suitable work when offered him or her, he or she shall thereby become
ineligible for waiting period credit or benefits for the week in which
that failure occurred and until he or she establishes to the
satisfaction of the director that he or she has, subsequent to that
failure, had at least {DEL four (4) DEL} {ADD eight (8) ADD} weeks of work and in
each of those {DEL four (4) DEL} {ADD eight (8) ADD} weeks has had earnings of at
least twenty (20) times the minimum hourly wage, as defined in section
28-42-3, for performing services in employment for one or more
employers subject to chapters 42-44, inclusive, of this title.
(b) "Suitable work" shall mean any work for which the individual in question is reasonably fitted, which is located within a reasonable distance of his residence or last place of work and which is not detrimental to his health, safety or morals. No work shall be deemed suitable, and benefits shall not be denied under chapters 42 -- 44, inclusive, of this title to any otherwise eligible individual for refusing to accept new work, under any of the following conditions:
(1) If the position offered is vacant due directly to a strike, lockout or other labor dispute;
(2) If the wages, hours or other conditions of the work are substantially less favorable to the employee than those prevailing for similar work in the locality;
(3) If, as a condition of being employed, the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization.
SECTION 3. Chapter 28-44 of the General Laws entitled "Employment Security -- Benefits" is hereby amended by adding thereto the following section:
{ADD 28-44-58.2. Voluntary withholding of income taxes. -- ADD} {ADD (a) An individual filing a new claim for benefits on or after January 1, 1998 shall, at the time of filing such claim, be advised that:
(1) Unemployment compensation is subject to federal and state income tax and requirements exist pertaining to estimated tax payments;
(2) The individual may elect to have federal income tax deducted and withheld from unemployment compensation paid at the rate specified in the Federal Internal Revenue Code;
(3) The individual may elect to have state income tax deducted and withheld from unemployment compensation paid at the rate established by the state tax administrator;
(4) The individual shall be permitted to change a previously elected withholding status only once during a benefit year.
(b) Amounts deducted and withheld from unemployment compensation for income taxes shall remain in the employment security fund until transferred to the federal or state taxing authority as a payment of income tax.
(c) Amounts may be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of unemployment compensation, child support obligations or any other amounts required to be deducted and withheld under the provisions of chapters 42-44, inclusive, of this title.
(d) The director shall follow all procedures specified by the United States Department of Labor and the Federal Internal Revenue Service pertaining to the deducting and withholding of income tax. ADD}
SECTION 4. This act shall take effect on October 5, 1997.
