Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0430 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2023 -- S 0430
6	6	========
7	7	LC000423
8	8	========
9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES
16	16	Introduced By: Senators Quezada, Euer, Cano, DiMario, Acosta, Lawson, Miller,
17	17	Pearson, Valverde, and Kallman
18	18	Date Introduced: February 16, 2023
19	19	Referred To: Senate Labor
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 28-12-2 of the General Laws in Chapter 28-12 entitled "Minimum 1
24	24	Wages" is hereby amended to read as follows: 2
25	25	28-12-2. Definitions. 3
26	26	As used in this chapter: 4
27	27	(1) “Advisory board” means a board created as provided in § 28-12-6. 5
28	28	(2) “Commissioner” means the minimum-wage commissioner appointed by the director of 6
29	29	labor and training as chief of the division of labor standards. 7
30	30	(3) “Director” means the director of labor and training, or his or her duly authorized 8
31	31	representative. 9
32	32	(4) “Employ” means to suffer or to permit to work. 10
33	33	(5)(i) “Employee” includes any individual suffered or permitted to work by an employer. 11
34	34	means any person providing labor or services for remuneration, as opposed to an independent 12
35	35	contractor, unless the hiring entity can establish that all of the following conditions are satisfied: 13
36	36	(A) The person is free from the control and direction of the hiring entity in connection with 14
37	37	the performance of the work, both under the contract for the performance of the work and in fact; 15
38	38	(B) The person performs work that is outside the usual course of the hiring entity's business; 16
39	39	and 17
40	40	(C) The person is customarily engaged in an independently established trade, occupation, 18
41	41	or business of the same nature as that involved in the work performed. 19
42	42
43	43
44	44	LC000423 - Page 2 of 18
45	45	(ii) “Employee” shall not include: 1
46	46	(A) Any individual employed in domestic service or in or about a private home; 2
47	47	(B) Any individual employed by the United States; 3
48	48	(C) Any individual engaged in the activities of an educational, charitable, religious, or 4
49	49	nonprofit organization where the employer-employee relationship does not, in fact, exist, or where 5
50	50	the services rendered to the organizations are on a voluntary basis; 6
51	51	(D) Newspaper deliverers on home delivery, shoe shiners in shoe shine establishments, 7
52	52	caddies on golf courses, pin persons in bowling alleys, ushers in theatres; 8
53	53	(E) Traveling salespersons or outside salespersons; 9
54	54	(F) Service performed by an individual in the employ of his or her son, daughter, or spouse 10
55	55	and service performed by a child under the age of twenty-one (21) in the employ of his or her father 11
56	56	or mother; 12
57	57	(G) Any individual employed between May 1 and October 1 in a resort establishment that 13
58	58	regularly serves meals to the general public and that is open for business not more than six (6) 14
59	59	months a year; 15
60	60	(H) Any individual employed by an organized camp that does not operate for more than 16
61	61	seven (7) months in any calendar year. However, this exemption does not apply to individua ls 17
62	62	employed by the camp on an annual, full-time basis. “Organized camp” means any camp, except a 18
63	63	trailer camp, having a structured program including, but not limited to, recreation, education, and 19
64	64	religious, or any combination of these. 20
65	65	(6) “Employer” includes any individual, partnership, association, corporation, business 21
66	66	trust, or any person, or group of persons, acting directly, or indirectly, in the interest of an employer, 22
67	67	in relation to an employee. 23
68	68	(7) “Occupation” means any occupation, service, trade, business, industry, or branch or 24
69	69	group of industries or employment or class of employment in which individuals are gainfully 25
70	70	employed. 26
71	71	(8) “Wage” means compensation due to an employee by reason of his or her employment. 27
72	72	SECTION 2. Section 28-29-2 of the General Laws in Chapter 28-29 entitled "Workers’ 28
73	73	Compensation — General Provisions" is hereby amended to read as follows: 29
74	74	28-29-2. Definitions. 30
75	75	In chapters 29 — 38 of this title, unless the context otherwise requires: 31
76	76	(1) “Department” means the department of labor and training. 32
77	77	(2) “Director” means the director of labor and training or his or her designee unless 33
78	78	specifically stated otherwise. 34
79	79
80	80
81	81	LC000423 - Page 3 of 18
82	82	(3)(i) “Earnings capacity” means the weekly straight-time earnings that an employee could 1
83	83	receive if the employee accepted an actual offer of suitable alternative employment. Earnings 2
84	84	capacity can also be established by the court based on evidence of ability to earn, including, but not 3
85	85	limited to, a determination of the degree of functional impairment and/or disability, that an 4
86	86	employee is capable of employment. The court may, in its discretion, take into consideration the 5
87	87	performance of the employee’s duty to actively seek employment in scheduling the implementation 6
88	88	of the reduction. The employer need not identify particular employment before the court can direct 7
89	89	an earnings capacity adjustment. In the event that an employee returns to light-duty employment 8
90	90	while partially disabled, an earnings capacity shall not be set based upon actual wages earned until 9
91	91	the employee has successfully worked at light duty for a period of at least thirteen (13) weeks. 10
92	92	(ii) As used under the provisions of this title, “functional impairment” means an anatomical 11
93	93	or functional abnormality existing after the date of maximum medical improvement as determined 12
94	94	by a medically or scientifically demonstrable finding and based upon the sixth (6th) edition of the 13
95	95	American Medical Association’s Guide to the Evaluation of Permanent Impairment or comparable 14
96	96	publications of the American Medical Association. 15
97	97	(iii) In the event that an employee returns to employment at an average weekly wage equal 16
98	98	to the employee’s pre-injury earnings exclusive of overtime, the employee will be presumed to 17
99	99	have regained his/her earning capacity. 18
100	100	(4)(i) “Employee” means any person who has entered into the employment of or works 19
101	101	under contract of service or apprenticeship with any employer, except that in the case of a city or 20
102	102	town other than the city of Providence it shall only mean that class or those classes of employees 21
103	103	as may be designated by a city, town, or regional school district in a manner provided in this chapter 22
104	104	to receive compensation under chapters 29 — 38 of this title. It also means any person providing 23
105	105	labor or services for remuneration, as opposed to an independent contractor, unless the hiring entity 24
106	106	can establish that all of the following conditions are satisfied: 25
107	107	(A) The person is free from the control and direction of the hiring entity in connection with 26
108	108	the performance of the work, both under the contract for the performance of the work and in fact; 27
109	109	(B) The person performs work that is outside the usual course of the hiring entity's business; 28
110	110	and 29
111	111	(C) The person is customarily engaged in an independently established trade, occupation, 30
112	112	or business, of the same nature as that involved in the work performed. Any person employed by 31
113	113	the state of Rhode Island, except for sworn employees of the Rhode Island state police, or by the 32
114	114	Rhode Island airport corporation who is otherwise entitled to the benefits of chapter 19 of title 45 33
115	115	shall be subject to the provisions of chapters 29 — 38 of this title for all case management 34
116	116
117	117
118	118	LC000423 - Page 4 of 18
119	119	procedures and dispute resolution for all benefits. 1
120	120	(ii) The term “employee” does not include any individual who is a shareholder or director 2
121	121	in a corporation, general or limited partners in a general partnership, a registered limited-liability 3
122	122	partnership, a limited partnership, or partners in a registered limited-liability limited partnership, 4
123	123	or any individual who is a member in a limited-liability company. These exclusions do not apply 5
124	124	to shareholders, directors, and members who have entered into the employment of or who work 6
125	125	under a contract of service or apprenticeship within a corporation or a limited-liability company. 7
126	126	(iii) The term “employee” also does not include a sole proprietor, independent contractor, 8
127	127	or a person whose employment is of a casual nature, and who is employed other than for the purpose 9
128	128	of the employer’s trade or business, or a person whose services are voluntary or who performs 10
129	129	charitable acts, nor shall it include the members of the regularly organized fire and police 11
130	130	departments of any town or city except for appeals from an order of the retirement board filed 12
131	131	pursuant to the provisions of § 45-21.2-9; provided, however, that it shall include the members of 13
132	132	the police and aircraft rescue and firefighting (ARFF) units of the Rhode Island airport corporation. 14
133	133	(iv) Whenever a contractor has contracted with the state, a city, town, or regional school 15
134	134	district, any person employed by that contractor in work under contract shall not be deemed an 16
135	135	employee of the state, city, town, or regional school district as the case may be. 17
136	136	(v) Any person who on or after January 1, 1999, was an employee and became a corporate 18
137	137	officer shall remain an employee, for purposes of these chapters, unless and until coverage under 19
138	138	this act is waived pursuant to § 28-29-8(b) or § 28-29-17. Any person who is appointed a corporate 20
139	139	officer between January 1, 1999, and December 31, 2001, and was not previously an employee of 21
140	140	the corporation, will not be considered an employee, for purposes of these chapters, unless that 22
141	141	corporate officer has filed a notice pursuant to § 28-29-19(c). 23
142	142	(vi) In the case of a person whose services are voluntary or who performs charitable acts, 24
143	143	any benefit received, in the form of monetary remuneration or otherwise, shall be reportable to the 25
144	144	appropriate taxation authority but shall not be deemed to be wages earned under contract of hire 26
145	145	for purposes of qualifying for benefits under chapters 29 — 38 of this title. 27
146	146	(vii) Any reference to an employee who had been injured shall, where the employee is 28
147	147	dead, include a reference to his or her dependents as defined in this section, or to his or her legal 29
148	148	representatives, or, where he or she is a minor or incompetent, to his or her conservator or guardian. 30
149	149	(viii) A “seasonal occupation” means those occupations in which work is performed on a 31
150	150	seasonal basis of not more than sixteen (16) weeks. 32
151	151	(5) “Employer” includes any person, partnership, corporation, or voluntary association, and 33
152	152	the legal representative of a deceased employer; it includes the state, and the city of Providence. It 34
153	153
154	154
155	155	LC000423 - Page 5 of 18
156	156	also includes each city, town, and regional school district in the state that votes or accepts the 1
157	157	provisions of chapters 29 — 38 of this title in the manner provided in this chapter or is a party to 2
158	158	an appeal from an order of the retirement board filed pursuant to the provisions of § 45-21.2-9. 3
159	159	(6) “General or special employer”: 4
160	160	(i) “General employer” includes but is not limited to temporary help companies and 5
161	161	employee leasing companies and means a person who for consideration and as the regular course 6
162	162	of its business supplies an employee with or without vehicle to another person. 7
163	163	(ii) “Special employer” means a person who contracts for services with a general employer 8
164	164	for the use of an employee, a vehicle, or both. 9
165	165	(iii) Whenever there is a general employer and special employer wherein the general 10
166	166	employer supplies to the special employer an employee and the general employer pays or is 11
167	167	obligated to pay the wages or salaries of the supplied employee, then, notwithstanding the fact that 12
168	168	direction and control is in the special employer and not the general employer, the general employer, 13
169	169	if it is subject to the provisions of the workers’ compensation act or has accepted that act, shall be 14
170	170	deemed to be the employer as set forth in subsection (5) of this section and both the general and 15
171	171	special employer shall be the employer for purposes of §§ 28-29-17 and 28-29-18. 16
172	172	(iv) Effective January 1, 2003, whenever a general employer enters into a contract or 17
173	173	arrangement with a special employer to supply an employee or employees for work, the special 18
174	174	employer shall require an insurer generated insurance coverage certification, on a form prescribed 19
175	175	by the department, demonstrating Rhode Island workers’ compensation and employer’s liability 20
176	176	coverage evidencing that the general employer carries workers’ compensation insurance with that 21
177	177	insurer with no indebtedness for its employees for the term of the contract or arrangement. In the 22
178	178	event that the special employer fails to obtain and maintain at policy renewal and thereafter this 23
179	179	insurer generated insurance coverage certification demonstrating Rhode Island workers’ 24
180	180	compensation and employer’s liability coverage from the general employer, the special employer 25
181	181	is deemed to be the employer pursuant to the provisions of this section. Upon the cancellation or 26
182	182	failure to renew, the insurer having written the workers’ compensation and employer’s liability 27
183	183	policy shall notify the certificate holders and the department of the cancellation or failure to renew 28
184	184	and upon notice, the certificate holders shall be deemed to be the employer for the term of the 29
185	185	contract or arrangement unless or until a new certification is obtained. 30
186	186	(7) “Independent contractor” means a person who has filed a notice of designation as 31
187	187	independent contractor with the director pursuant to § 28-29-17.1 or as otherwise found by the 32
188	188	workers’ compensation court. 33
189	189	(8)(i) “Injury” means and refers to personal injury to an employee arising out of and in the 34
190	190
191	191
192	192	LC000423 - Page 6 of 18
193	193	course of his or her employment, connected and referable to the employment. 1
194	194	(ii) An injury to an employee while voluntarily participating in a private, group, or 2
195	195	employer-sponsored carpool, vanpool, commuter bus service, or other rideshare program, having 3
196	196	as its sole purpose the mass transportation of employees to and from work shall not be deemed to 4
197	197	have arisen out of and in the course of employment. Nothing in the foregoing provision shall be 5
198	198	held to deny benefits under chapters 29 — 38 and chapter 47 of this title to employees such as 6
199	199	drivers, mechanics, and others who receive remuneration for their participation in the rideshare 7
200	200	program. Provided, that the foregoing provision shall not bar the right of an employee to recover 8
201	201	against an employer and/or driver for tortious misconduct. 9
202	202	(9) “Maximum medical improvement” means a point in time when any medically 10
203	203	determinable physical or mental impairment as a result of injury has become stable and when no 11
204	204	further treatment is reasonably expected to materially improve the condition. Neither the need for 12
205	205	future medical maintenance nor the possibility of improvement or deterioration resulting from the 13
206	206	passage of time and not from the ordinary course of the disabling condition, nor the continuation 14
207	207	of a preexisting condition precludes a finding of maximum medical improvement. A finding of 15
208	208	maximum medical improvement by the workers’ compensation court may be reviewed only where 16
209	209	it is established that an employee’s condition has substantially deteriorated or improved. 17
210	210	(10) “Physician” means medical doctor, surgeon, dentist, licensed psychologist, 18
211	211	chiropractor, osteopath, podiatrist, or optometrist, as the case may be. 19
212	212	(11) “Suitable alternative employment” means employment or an actual offer of 20
213	213	employment that the employee is physically able to perform and will not exacerbate the employee’s 21
214	214	health condition and that bears a reasonable relationship to the employee’s qualifications, 22
215	215	background, education, and training. The employee’s age alone shall not be considered in 23
216	216	determining the suitableness of the alternative employment. 24
217	217	SECTION 3. Section 28-39-2 of the General Laws in Chapter 28-39 entitled "Temporary 25
218	218	Disability Insurance — General Provisions" is hereby amended to read as follows: 26
219	219	28-39-2. Definitions. 27
220	220	The following words and phrases, as used in chapters 39 — 41 of this title, have the 28
221	221	following meanings unless the context clearly requires otherwise: 29
222	222	(1) “Average weekly wage” means the amount determined by dividing the individua l’s 30
223	223	total wages earned for services performed in employment within his or her base period by the 31
224	224	number of that individual’s credit weeks within the base period. 32
225	225	(2) “Base period” with respect to an individual’s benefit year when the benefit year begins 33
226	226	on or after October 7, 1990, means the first four (4) of the most recently completed five (5) calendar 34
227	227
228	228
229	229	LC000423 - Page 7 of 18
230	230	quarters immediately preceding the first day of an individual’s benefit year; provided, that for any 1
231	231	individual’s benefit year when the benefit year begins on or after October 4, 1992, and for any 2
232	232	individual deemed monetarily ineligible for benefits under the “base period” as defined in this 3
233	233	subdivision, the department shall make a re-determination of entitlement based upon an alternate 4
234	234	base period that consists of the last four (4) completed calendar quarters immediately preceding the 5
235	235	first day of the claimant’s benefit year. Notwithstanding anything contained to the contrary in this 6
236	236	subdivision, the base period shall not include any calendar quarter previously used to establish a 7
237	237	valid claim for benefits; provided, however, that the “base period” with respect to members of the 8
238	238	United States military service, the Rhode Island National Guard, or a United States military reserve 9
239	239	force, and who served in a United States declared combat operation during their military service, 10
240	240	who file a claim for benefits following their release from their state or federal active military service 11
241	241	and who are deemed to be monetarily ineligible for benefits under this section, shall mean the first 12
242	242	four (4) of the most recently completed five (5) calendar quarters immediately preceding the first 13
243	243	day the individual was called into that state or federal active military service; provided, that for any 14
244	244	individual deemed monetarily ineligible for benefits under the “base period” as defined in this 15
245	245	section, the department shall make a re-determination of entitlement based upon an alternative base 16
246	246	period that consists of the last four (4) completed calendar quarters immediately preceding the first 17
247	247	day the claimant was called into that state or federal active military service. Notwithstanding any 18
248	248	provision of this section of the general or public laws to the contrary, the base period shall not 19
249	249	include any calendar quarter previously used to establish a valid claim for benefits. 20
250	250	(3) “Benefit” means the money payable, as provided in chapters 39 — 41 of this title, to an 21
251	251	individual as compensation for his or her unemployment caused by sickness. 22
252	252	(4) “Benefit credits” means the total amount of money payable to an individual as benefits, 23
253	253	as provided in § 28-41-7. 24
254	254	(5) “Benefit rate” means the money payable to an individual as compensation, as provided 25
255	255	in chapters 39 — 41 of this title, for his or her wage losses with respect to any week during which 26
256	256	his or her unemployment is caused by sickness. 27
257	257	(6) “Benefit year” with respect to any individual who does not already have a benefit year 28
258	258	in effect, and who files a valid claim for benefits as of November 16, 1958, or any later date, means 29
259	259	fifty-two (52) consecutive calendar weeks, the first of which shall be the week containing the day 30
260	260	as of which he or she first files that valid claim in accordance with regulations adopted as 31
261	261	subsequently prescribed; provided, that for any benefit year beginning on or after October 7, 1990, 32
262	262	the benefit year shall be fifty-three (53) consecutive calendar weeks if the subsequent filing of a 33
263	263	new valid claim immediately following the end of a previous benefit year would result in the 34
264	264
265	265
266	266	LC000423 - Page 8 of 18
267	267	overlapping of any quarter of the base period of the prior new claim. In no event shall a new benefit 1
268	268	year begin prior to the Sunday next following the end of the old benefit year. 2
269	269	(i) For benefit years that begin on or after July 1, 2012, an individual’s benefit year will 3
270	270	begin on the Sunday of the calendar week in which an individual first became unemployed due to 4
271	271	sickness and for which the individual has filed a valid claim for benefits. 5
272	272	(7) “Board” means the board of review as created under chapter 16.1 of title 42. 6
273	273	(8) “Calendar quarter” has the same definition as contained in chapter 42 of this title. 7
274	274	(9) “Credit week” means any week within an individual’s base period in which that 8
275	275	individual earns wages amounting to at least twenty (20) times the minimum hourly wage as 9
276	276	defined in chapter 12 of this title, for performing services in employment for one or more employers 10
277	277	subject to chapters 39 — 41 of this title. 11
278	278	(10) “Director” means the director of the department of labor and training. 12
279	279	(11) “Employee” means any person who is or has been employed by an employer subject 13
280	280	to chapters 39 — 41 of this title and in employment subject to those chapters providing labor or 14
281	281	services for remuneration, as opposed to an independent contractor, unless the hiring entity can 15
282	282	establish that all of the following conditions are satisfied: 16
283	283	(i) The person is free from the control and direction of the hiring entity in connection with 17
284	284	the performance of the work, both under the contract for the performance of the work and in fact; 18
285	285	(ii) The person performs work that is outside the usual course of the hiring entity's business; 19
286	286	and 20
287	287	(iii) The person is customarily engaged in an independently established trade, occupation, 21
288	288	or business, of the same nature as that involved in the work performed. 22
289	289	(12) “Employer” means any employing unit that is an employer under chapters 42 — 44 23
290	290	of this title. 24
291	291	(13) “Employing unit” has the same definition as contained in chapter 42 of this title and 25
292	292	includes any governmental entity that elects to become subject to the provisions of chapters 39 — 26
293	293	41 of this title, in accordance with the provisions of §§ 28-39-3.1 and 28-39-3.2. 27
294	294	(14) “Employment” has the same definition as contained in chapter 42 of this title. 28
295	295	(15) “Employment office” has the same definition as contained in chapter 42 of this title. 29
296	296	(16) “Fund” means the Rhode Island temporary disability insurance fund established by 30
297	297	this chapter. 31
298	298	(17) “Partial unemployment due to sickness.” For weeks beginning on or after January 1, 32
299	299	2006, an individual shall be deemed partially unemployed due to sickness in any week of less than 33
300	300	full-time work if he or she fails to earn in wages for services for that week an amount equal to the 34
301	301
302	302
303	303	LC000423 - Page 9 of 18
304	304	weekly benefit rate for total unemployment due to sickness to which he or she would be entitled if 1
305	305	totally unemployed due to sickness and eligible. 2
306	306	(i) For the purposes of this subdivision and subdivision (22) of this section, “Wages” 3
307	307	includes only that part of remuneration for any work, which is in excess of one-fifth (
308	308	1
309	309	/5) of the 4
310	310	weekly benefit rate for total unemployment, rounded to the next lower multiple of one dollar 5
311	311	($1.00), to which the individual would be entitled if totally unemployed and eligible in any one 6
312	312	week, and “services” includes only that part of any work for which remuneration in excess of one-7
313	313	fifth (
314	314	1
315	315	/5) of the weekly benefit rate for total unemployment, rounded to the next lower multiple of 8
316	316	one dollar ($1.00), to which the individual would be entitled if totally unemployed and eligible in 9
317	317	any one week is payable; provided, that nothing contained in this paragraph shall permit any 10
318	318	individual to whom remuneration is payable for any work performed in any week in an amount 11
319	319	equal to, or greater than, his or her weekly benefit rate to receive benefits under this subdivision 12
320	320	for that week. 13
321	321	(18) “Reserve fund” means the temporary disability insurance reserve fund established by 14
322	322	§ 28-39-7. 15
323	323	(19) “Services” means all endeavors undertaken by an individual that are paid for by 16
324	324	another or with respect to which the individual performing the services expects to receive wages or 17
325	325	profits. 18
326	326	(20) “Sickness.” An individual shall be deemed to be sick in any week in which, because 19
327	327	of his or her physical or mental condition, including pregnancy, he or she is unemployed and unable 20
328	328	to perform his or her regular or customary work or services. 21
329	329	(21)(i) “Taxes” means the money payments required by chapters 39 — 41 of this title, to 22
330	330	be made to the temporary disability insurance fund or to the temporary disability insurance reserve 23
331	331	fund. 24
332	332	(ii) Wherever and whenever in chapters 39 — 41 of this title, the words “contribution” 25
333	333	and/or “contributions” appear, those words shall be construed to mean the “taxes,” as defined in 26
334	334	this subdivision, that are the money payments required by those chapters to be made to the 27
335	335	temporary disability insurance fund or to the temporary disability insurance reserve fund. 28
336	336	(22) “Wages” has the same definition as contained in chapter 42 of this title; provided, that 29
337	337	no individual shall be denied benefits under chapters 39 — 41 of this title because his or her 30
338	338	employer continues to pay to that individual his or her regular wages, or parts of them, while he or 31
339	339	she is unemployed due to sickness and unable to perform his or her regular or customary work or 32
340	340	services. The amount of any payments, whether or not under a plan or system, made to or on behalf 33
341	341	of an employee by his or her employer after the expiration of six (6) calendar months following the 34
342	342
343	343
344	344	LC000423 - Page 10 of 18
345	345	last calendar month in which the employee performed actual bona fide personal services for his or 1
346	346	her employer, shall not be deemed to be wages either for the purpose of paying contributions 2
347	347	thereon under chapter 40 of this title, or for the purpose of being used as a basis for paying benefits 3
348	348	under chapter 41 of this title. 4
349	349	(23) “Week” has the same definition as contained in chapter 42 of this title. 5
350	350	SECTION 4. Section 28-42-3 of the General Laws in Chapter 28-42 entitled "Employment 6
351	351	Security — General Provisions" is hereby amended to read as follows: 7
352	352	28-42-3. Definitions. 8
353	353	The following words and phrases, as used in chapters 42 — 44 of this title, have the 9
354	354	following meanings unless the context clearly requires otherwise: 10
355	355	(1) “Administration account” means the employment security administration account 11
356	356	established by this chapter. 12
357	357	(2) “Average weekly wage” means the amount determined by dividing the individua l’s 13
358	358	total wages earned for service performed in employment within the individual’s base period by the 14
359	359	number of that individual’s credit weeks within the individual’s base period. 15
360	360	(3) “Base period,” with respect to an individual’s benefit year, means the first four (4), of 16
361	361	the most recently completed five (5) calendar quarters immediately preceding the first day of an 17
362	362	individual’s benefit year. For any individual’s benefit year, and for any individual deemed 18
363	363	monetarily ineligible for benefits for the “base period” as defined in this subdivision, the 19
364	364	department shall make a re-determination of entitlement based upon the alternate base period that 20
365	365	consists of the last four (4) completed calendar quarters immediately preceding the first day of the 21
366	366	claimant’s benefit year. Notwithstanding anything contained to the contrary in this subdivision, the 22
367	367	base period shall not include any calendar quarter previously used to establish a valid claim for 23
368	368	benefits; provided, that notwithstanding any provision of chapters 42 — 44 of this title to the 24
369	369	contrary, for the benefit years beginning on or after October 4, 1992, whenever an individual who 25
370	370	has received workers’ compensation benefits is entitled to reinstatement under § 28-33-47, but the 26
371	371	position to which reinstatement is sought does not exist or is not available, the individual’s base 27
372	372	period shall be determined as if the individual filed for benefits on the date of the injury. 28
373	373	(4) “Benefit” means the money payable to an individual as compensation for the 29
374	374	individual’s wage losses due to unemployment as provided in these chapters. 30
375	375	(5) “Benefit credits” means the total amount of money payable to an individual as benefits, 31
376	376	as determined by § 28-44-9. 32
377	377	(6) “Benefit rate” means the money payable to an individual as compensation, as provided 33
378	378	in chapters 42 — 44 of this title, for the individual’s wage losses with respect to any week of total 34
379	379
380	380
381	381	LC000423 - Page 11 of 18
382	382	unemployment. 1
383	383	(7) “Benefit year,” with respect to any individual who does not already have a benefit year 2
384	384	in effect and who files a valid claim for benefits, means fifty-two (52) consecutive calendar weeks, 3
385	385	the first of which shall be the week containing the day as of which he or she first files a valid claim 4
386	386	in accordance with regulations adopted as hereinafter prescribed; provided, that the benefit year 5
387	387	shall be fifty-three (53) weeks if the filing of a new, valid claim would result in overlapping any 6
388	388	quarter of the base period of a prior new claim previously filed by the individual. In no event shall 7
389	389	a new benefit year begin prior to the Sunday next following the end of the old benefit year. 8
390	390	(8) “Calendar quarter” means the period of three (3) consecutive calendar months ending 9
391	391	March 31, June 30, September 30, and December 31; or the equivalent thereof, in accordance with 10
392	392	regulations as subsequently prescribed. 11
393	393	(9) “Contributions” means the money payments to the state employment security fund 12
394	394	required by those chapters. 13
395	395	(10) “Credit amount,” effective July 6, 2014, means earnings by the individual in an 14
396	396	amount equal to at least eight (8) times the individual’s weekly benefit rate; 15
397	397	(11) “Credit week,” prior to July 1, 2012, means any week within an individual’s base 16
398	398	period in which that individual earned wages amounting to at least twenty (20) times the minimum 17
399	399	hourly wage as defined in chapter 12 of this title for performing services in employment for one or 18
400	400	more employers subject to chapters 42 — 44 of this title, and for the period July 1, 2012, through 19
401	401	July 5, 2014, means any week within an individual’s base period in which that individual earned 20
402	402	wages amounting to at least the individual’s weekly benefit rate for performing services in 21
403	403	employment for one or more employers subject to chapters 42 — 44 of this title. 22
404	404	(12) “Crew leader,” for the purpose of subdivision (19) of this section, means an individual 23
405	405	who: 24
406	406	(i) Furnishes individuals to perform service in agricultural labor for any other person; 25
407	407	(ii) Pays (either on the crew leader’s own behalf or on behalf of that other person) the 26
408	408	individuals so furnished by the crew leader for the service in agricultural labor performed by them; 27
409	409	and 28
410	410	(iii) Has not entered into a written agreement with that other person (farm operator) under 29
411	411	which that individual (crew leader) is designated as an employee of that other person (farm 30
412	412	operator). 31
413	413	(13) “Director” means the head of the department of labor and training or the director’s 32
414	414	authorized representative. 33
415	415	(14) “Domestic service employment.” “Employment” includes domestic service in a 34
416	416
417	417
418	418	LC000423 - Page 12 of 18
419	419	private home performed for a person who paid cash remuneration of one thousand dollars ($1,000) 1
420	420	or more in any calendar quarter in the current calendar year, or the preceding calendar year, to 2
421	421	individuals employed in that domestic service. 3
422	422	(15) “Employee” means any person who is, or has been, employed by an employer subject 4
423	423	to those chapters and in employment subject to those chapters providing labor or services for 5
424	424	remuneration, as opposed to an independent contractor, unless the hiring entity can establish that 6
425	425	all of the following conditions are satisfied: 7
426	426	(i) The person is free from the control and direction of the hiring entity in connection with 8
427	427	the performance of the work, both under the contract for the performance of the work and in fact; 9
428	428	(ii) The person performs work that is outside the usual course of the hiring entity's business; 10
429	429	and 11
430	430	(iii) The person is customarily engaged in an independently established trade, occupation, 12
431	431	or business, of the same nature as that involved in the work performed. 13
432	432	(16) “Employer” means: 14
433	433	(i) Any employing unit that was an employer as of December 31, 1955; 15
434	434	(ii) Any employing unit that for some portion of a day on and after January 1, 1956, has, 16
435	435	or had, in employment, within any calendar year, one or more individuals; except, however, for 17
436	436	“domestic service employment,” as defined in subdivision (14) of this section; 18
437	437	(iii) For the effective period of its election pursuant to § 28-42-12, any other employing 19
438	438	unit that has elected to become subject to chapters 42 — 44 of this title; or 20
439	439	(iv) Any employing unit not an employer by reason of any other paragraph of this 21
440	440	subdivision for which, within either the current or preceding calendar year, service is, or was, 22
441	441	performed with respect to which that employing unit is liable for any federal tax against which 23
442	442	credit may be taken for contributions required to be paid into this state’s employment security fund; 24
443	443	or which, as a condition for approval of chapters 42 — 44 of this title for full tax credit against the 25
444	444	tax imposed by the Federal Unemployment Tax Act, 26 U.S.C. § 3301 et seq., is required, pursuant 26
445	445	to that act, to be an “employer” under chapters 42 — 44 of this title. 27
446	446	(17) “Employing unit” means any person, partnership, association, trust, estate, or 28
447	447	corporation, whether domestic or foreign, or its legal representative, trustee in bankruptcy, receiver, 29
448	448	or trustee, or the legal representative of a deceased person, that has, or had, in the unit’s employ, 30
449	449	one or more individuals. For the purposes of subdivision (14) of this section, a private home shall 31
450	450	be considered an employing unit only if the person for whom the domestic service was performed 32
451	451	paid cash remuneration of one thousand dollars ($1,000) or more in any calendar quarter in the 33
452	452	current calendar year, or the preceding calendar year, to individuals employed in that domestic 34
453	453
454	454
455	455	LC000423 - Page 13 of 18
456	456	service in that private home. 1
457	457	(18)(i) “Employment,” subject to §§ 28-42-4 — 28-42-10, means service, including service 2
458	458	in interstate commerce, performed for wages, or under any contract of hire, written or oral, express 3
459	459	or implied; provided, that service performed shall also be deemed to constitute employment for all 4
460	460	the purposes of chapters 42 — 44 of this title if performed by an individual in the employ of a 5
461	461	nonprofit organization as described in subdivision (25) of this section, except as provided in § 28-6
462	462	42-8(7); 7
463	463	(ii) Notwithstanding any other provisions of this section, “Employment” also means 8
464	464	service with respect to which a tax is required to be paid under any federal law imposing a tax 9
465	465	against which credit may be taken for contributions required to be paid into this state’s employment 10
466	466	security fund or which, as a condition for full tax credit against the tax imposed by the Federal 11
467	467	Unemployment Tax Act, is required to be covered under chapters 42 — 44 of this title; 12
468	468	(iii) Employment not to include owners. Employment does not include services performed 13
469	469	by sole proprietors (owners), partners in a partnership, limited liability company — single member 14
470	470	filing as a sole proprietor with the IRS, or members of a limited liability company filing as a 15
471	471	partnership with the IRS. 16
472	472	(19) “Employment — Crew leader.” For the purposes of subdivision (12) of this section: 17
473	473	(i) Any individual who is a member of a crew furnished by a crew leader to perform service 18
474	474	in agricultural labor for any other person shall be treated as an employee of that crew leader if: 19
475	475	(A) That crew leader holds a valid certificate of registration under the Migrant and Seasonal 20
476	476	Agricultural Worker Protection Act, 29 U.S.C. § 1801 et seq., or substantially all members of that 21
477	477	crew operate or maintain tractors, mechanized harvesting, or crop-dusting equipment, or any other 22
478	478	mechanized equipment that is provided by that crew leader; and 23
479	479	(B) That individual is not an employee of the other person within the meaning of 24
480	480	subdivision (15) of this section; and 25
481	481	(ii) In the case of any individual who is furnished by a crew leader to perform service in 26
482	482	agricultural labor for any other person and who is not treated as an employee of that crew leader: 27
483	483	(A) That other person, and not the crew leader, shall be treated as the employer of that 28
484	484	individual; and 29
485	485	(B) That other person shall be treated as having paid cash remuneration to that individual 30
486	486	in an amount equal to the amount of cash remuneration paid to that individual by the crew leader 31
487	487	(either on the crew leader’s own behalf or on behalf of that other person) for the service in 32
488	488	agricultural labor performed for that other person. 33
489	489	(20) “Employment office” means a free, public-employment office, or its branch, operated 34
490	490
491	491
492	492	LC000423 - Page 14 of 18
493	493	by the director or by this state as part of a system of free, public-employment offices, or any other 1
494	494	agency that the director may designate with the approval of the Social Security Administration. 2
495	495	(21) “Fund” means the employment security fund established by this chapter. 3
496	496	(22) “Governmental entity” means state and local governments in this state and includes 4
497	497	the following: 5
498	498	(i) The state of Rhode Island or any of its instrumentalities, or any political subdivision of 6
499	499	the state, or any of its instrumentalities; 7
500	500	(ii) Any instrumentality of more than one of these entities; or 8
501	501	(iii) Any instrumentality of any of these entities and one or more other states or political 9
502	502	subdivisions. 10
503	503	(23) “Hospital” means an institution that has been licensed, certified, or approved by the 11
504	504	department of health as a hospital. 12
505	505	(24)(i) “Institution of higher education” means an educational institution in this state that: 13
506	506	(A) Admits, as regular students, only individuals having a certificate of graduation from a 14
507	507	high school, or the recognized equivalent of such certificate; 15
508	508	(B) Is legally authorized within this state to provide a program of education beyond high 16
509	509	school; 17
510	510	(C) Provides: 18
511	511	(I) An educational program for which it awards a bachelor’s or higher degree, or a program 19
512	512	that is acceptable for full credit toward such a degree; 20
513	513	(II) A program of post-graduate or post-doctoral studies; or 21
514	514	(III) A program of training to prepare students for gainful employment in a recognized 22
515	515	occupation; and 23
516	516	(D) Is a public or other nonprofit institution. 24
517	517	(ii) Notwithstanding any of the preceding provisions of this subdivision, all colleges and 25
518	518	universities in this state are institutions of higher education for purposes of this section. 26
519	519	(25) “Nonprofit organization” means an organization, or group of organizations, as defined 27
520	520	in 26 U.S.C. § 501(c)(3), that is exempt from income tax under 26 U.S.C. § 501(a). 28
521	521	(26)(i) “Partial unemployment.” An employee shall be deemed partially unemployed in 29
522	522	any week of less than full-time work if the employee fails to earn in wages for that week an amount 30
523	523	equal to the weekly benefit rate for total unemployment to which the employee would be entitled 31
524	524	if totally unemployed and eligible. For weeks beginning on or after May 23, 2021, through June 32
525	525	30, 2023, an employee shall be deemed partially unemployed in any week of less than full-time 33
526	526	work if the employee fails to earn wages for that week in an amount equal to or greater than one 34
527	527
528	528
529	529	LC000423 - Page 15 of 18
530	530	hundred and fifty percent (150%) of the weekly benefit rate for total unemployment to which the 1
531	531	employee would be entitled if totally unemployed and eligible. 2
532	532	(ii) For the purposes of this subdivision and subdivision (28) of this section, “wages” 3
533	533	includes only that part of remuneration for any work that is in excess of one-fifth (
534	534	1
535	535	/5) of the weekly 4
536	536	benefit rate for total unemployment, rounded to the next lower multiple of one dollar ($1.00), to 5
537	537	which the individual would be entitled if totally unemployed and eligible in any one week, and 6
538	538	“services” includes only that part of any work for which remuneration in excess of one-fifth (
539	539	1
540	540	/5) 7
541	541	of the weekly benefit rate for total unemployment, rounded to the next lower multiple of one dollar 8
542	542	($1.00), to which the individual would be entitled if totally unemployed and eligible in any one 9
543	543	week is payable; provided, that nothing contained in this paragraph shall permit any individual to 10
544	544	whom remuneration is payable for any work performed in any week in an amount equal to or greater 11
545	545	than his or her weekly benefit rate to receive benefits under this subdivision for that week. 12
546	546	(iii) Notwithstanding the foregoing, for weeks ending on or after May 23, 2021, through 13
547	547	June 30, 2023, “wages” includes only that part of remuneration for any work that is in excess of 14
548	548	fifty percent (50%) of the weekly benefit rate for total unemployment, rounded to the next lower 15
549	549	multiple of one dollar ($1.00), to which the individual would be entitled if totally unemployed and 16
550	550	eligible in any one week, and “services” includes only that part of any work for which remuneration 17
551	551	in excess of fifty percent (50%) of the weekly benefit rate for total unemployment, rounded to the 18
552	552	next lower multiple of one dollar ($1.00), to which the individual would be entitled if totally 19
553	553	unemployed and eligible in any one week is payable. Provided, that, during the period defined in 20
554	554	this subdivision, nothing contained in this subdivision shall permit any individual to whom 21
555	555	remuneration is payable for any work performed in any week in an amount equal to or greater than 22
556	556	one hundred fifty percent (150%) of their weekly benefit rate to receive benefits under this 23
557	557	subdivision for that week. 24
558	558	(iv) Notwithstanding anything contained to the contrary in this subdivision, “services,” as 25
559	559	used in this subdivision and in subdivision (28) of this section, does not include services rendered 26
560	560	by an individual under the exclusive supervision of any agency of this state, or any of its political 27
561	561	subdivisions, by which the services are required solely for the purpose of affording relief, support, 28
562	562	or assistance to needy individuals performing those services, or services performed by members of 29
563	563	the national guard and organized reserves in carrying out their duties in weekly drills as members 30
564	564	of those organizations. “Wages,” as used in this subdivision and in subdivision (28) of this section, 31
565	565	does not include either remuneration received by needy individuals for rendering the 32
566	566	aforementioned services when that remuneration is paid exclusively from funds made available for 33
567	567	that purpose out of taxes collected by this state or any of its political subdivisions, or remuneration 34
568	568
569	569
570	570	LC000423 - Page 16 of 18
571	571	received from the federal government by members of the national guard and organized reserves, as 1
572	572	drill pay, including longevity pay and allowances. 2
573	573	(27) “Payroll” means the total amount of all wages paid by the employer to the employer’s 3
574	574	employees for employment. 4
575	575	(28) “Total unemployment.” An individual shall be deemed totally unemployed in any 5
576	576	week in which the individual performs no services (as used in subdivision (26) of this section) and 6
577	577	for which the individual earns no wages (as used in subdivision (26) of this section), and in which 7
578	578	the individual cannot reasonably return to any self-employment in which the individual has 8
579	579	customarily been engaged. 9
580	580	(29) “Wages” means all remuneration paid for personal services on or after January 1, 10
581	581	1940, including commissions and bonuses and the cash value of all remuneration paid in any 11
582	582	medium other than cash, and all other remuneration that is subject to a tax under a federal law 12
583	583	imposing a tax against which credit may be taken for contributions required to be paid into a state 13
584	584	unemployment fund. Gratuities customarily received by an individual in the course of the 14
585	585	individual’s employment from persons other than the individual’s employing unit shall be treated 15
586	586	as wages paid by the individual’s employing unit. The reasonable cash value of remuneration paid 16
587	587	in any medium other than cash, and the reasonable amount of gratuities, shall be estimated and 17
588	588	determined in accordance with rules prescribed by the director; except that for the purpose of this 18
589	589	subdivision and of §§ 28-43-1 — 28-43-8.1, 28-43-8.2 [repealed], 28-43-8.3, 28-43-8.4 [repealed], 19
590	590	28-43-8.5 — 28-43-8.10, 28-43-11 [repealed], and 28-43-12 — 28-43-14, this term does not 20
591	591	include: 21
592	592	(i) That part of remuneration that is paid by an employer to an individual with respect to 22
593	593	employment during any calendar year, after remuneration equal to the amount of the taxable wage 23
594	594	base as determined in accordance with § 28-43-7 has been paid during that calendar year by the 24
595	595	employer or the employer’s predecessor to that individual; provided, that if the definition of 25
596	596	“wages” as contained in the Federal Unemployment Tax Act is amended to include remuneration 26
597	597	in excess of the taxable wage base for that employment, then, for the purposes of §§ 28-43-1 — 27
598	598	28- 43-14, “wages” includes the remuneration as previously set forth, up to an amount equal to the 28
599	599	dollar limitation specified in the federal act. For the purposes of this subdivision, “employment” 29
600	600	includes services constituting employment under any employment security law of another state or 30
601	601	of the federal government; 31
602	602	(ii) The amount of any payment made to, or on behalf of, an employee under a plan or 32
603	603	system established by an employer that makes provision for employees generally, or for a class or 33
604	604	classes of employees (including any amount paid by an employer or an employee for insurance or 34
605	605
606	606
607	607	LC000423 - Page 17 of 18
608	608	annuities, or into a fund, to provide for any such payment), on account of: 1
609	609	(A) Retirement; 2
610	610	(B) Sickness or accident disability; 3
611	611	(C) Medical and hospitalization expenses in connection with sickness or accident 4
612	612	disability; or 5
613	613	(D) Death; provided, that the employee has not the: 6
614	614	(I) Option to receive, instead of provision for that death benefit, any part of that payment 7
615	615	or, if that death benefit is insured, any part of the premiums (or contributions to premiums) paid by 8
616	616	the individual’s employer; and 9
617	617	(II) Right, under the provisions of the plan or system or policy of insurance providing for 10
618	618	that death benefit, to assign that benefit, or to receive a cash consideration in lieu of that benefit 11
619	619	either upon the employee’s withdrawal from the plan or system providing for that benefit or upon 12
620	620	termination of the plan or system or policy of insurance, or of the individual’s employment with 13
621	621	that employer; 14
622	622	(E) The payment by an employer (without deduction from the remuneration of the 15
623	623	employee) of: 16
624	624	(I) The tax imposed upon an employee under 26 U.S.C. § 3101; or 17
625	625	(II) Any payment required from an employee under chapters 42 — 44 of this title. 18
626	626	(iii) Any amount paid by an employee, or an amount paid by an employer, under a benefit 19
627	627	plan organized under the Internal Revenue Code [26 U.S.C. § 125]. 20
628	628	(30) “Week” means the seven-day (7) calendar week beginning on Sunday at 12:01 a.m. 21
629	629	and ending on Saturday at 12:00 a.m. midnight. 22
630	630	SECTION 5. This act shall take effect upon passage. 23
631	631	========
632	632	LC000423
633	633	========
634	634
635	635
636	636	LC000423 - Page 18 of 18
637	637	EXPLANATION
638	638	BY THE LEGISLATIVE COUNCIL
639	639	OF
640	640	A N A C T
641	641	RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES
642	642	***
643	643	This act would, for purposes of wages, workers' compensation, temporary disability and 1
644	644	unemployment insurance benefits, create a new definition for the term "employee", which deems a 2
645	645	worker to be an employee, as opposed to an independent contractor, unless three (3) specific 3
646	646	conditions are satisfied. 4
647	647	This act would take effect upon passage. 5
648	648	========
649	649	LC000423
650	650	========
651	651