Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0716 Compare Versions

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89 S TATE OF RHODE IS LAND
910 IN GENERAL ASSEMBLY
1011 JANUARY SESSION, A.D. 2023
1112 ____________
1213
1314 A N A C T
1415 RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY --
1516 GENERAL PROVISIONS
1617 Introduced By: Senators Goodwin, DiPalma, and Ciccone
1718 Date Introduced: March 22, 2023
1819 Referred To: Senate Finance
1920 (Dept. of Labor and Training)
2021
2122 It is enacted by the General Assembly as follows:
2223 SECTION 1. Section 28-42-3 of the General Laws in Chapter 28-42 entitled "Employment 1
2324 Security — General Provisions" is hereby amended to read as follows: 2
2425 28-42-3. Definitions. 3
2526 The following words and phrases, as used in chapters 42 — 44 of this title, have the 4
2627 following meanings unless the context clearly requires otherwise: 5
2728 (1) “Administration account” means the employment security administration account 6
2829 established by this chapter. 7
2930 (2) “Average weekly wage” means the amount determined by dividing the individua l’s 8
3031 total wages earned for service performed in employment within the individual’s base period by the 9
3132 number of that individual’s credit weeks within the individual’s base period. 10
3233 (3) “Base period,” with respect to an individual’s benefit year, means the first four (4), of 11
3334 the most recently completed five (5) calendar quarters immediately preceding the first day of an 12
3435 individual’s benefit year. For any individual’s benefit year, and for any individual deemed 13
3536 monetarily ineligible for benefits for the “base period” as defined in this subdivision, the 14
3637 department shall make a re-determination of entitlement based upon the alternate base period that 15
3738 consists of the last four (4) completed calendar quarters immediately preceding the first day of the 16
3839 claimant’s benefit year. Notwithstanding anything contained to the contrary in this subdivision, the 17
3940 base period shall not include any calendar quarter previously used to establish a valid claim for 18
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4244 benefits; provided, that notwithstanding any provision of chapters 42 — 44 of this title to the 1
4345 contrary, for the benefit years beginning on or after October 4, 1992, whenever an individual who 2
4446 has received workers’ compensation benefits is entitled to reinstatement under § 28-33-47, but the 3
4547 position to which reinstatement is sought does not exist or is not available, the individual’s base 4
4648 period shall be determined as if the individual filed for benefits on the date of the injury. 5
4749 (4) “Benefit” means the money payable to an individual as compensation for the 6
4850 individual’s wage losses due to unemployment as provided in these chapters. 7
4951 (5) “Benefit credits” means the total amount of money payable to an individual as benefits, 8
5052 as determined by § 28-44-9. 9
5153 (6) “Benefit rate” means the money payable to an individual as compensation, as provided 10
5254 in chapters 42 — 44 of this title, for the individual’s wage losses with respect to any week of total 11
5355 unemployment. 12
5456 (7) “Benefit year,” with respect to any individual who does not already have a benefit year 13
5557 in effect and who files a valid claim for benefits, means fifty-two (52) consecutive calendar weeks, 14
5658 the first of which shall be the week containing the day as of which he or she first files a valid claim 15
5759 in accordance with regulations adopted as hereinafter prescribed; provided, that the benefit year 16
5860 shall be fifty-three (53) weeks if the filing of a new, valid claim would result in overlapping any 17
5961 quarter of the base period of a prior new claim previously filed by the individual. In no event shall 18
6062 a new benefit year begin prior to the Sunday next following the end of the old benefit year. 19
6163 (8) “Calendar quarter” means the period of three (3) consecutive calendar months ending 20
6264 March 31, June 30, September 30, and December 31; or the equivalent thereof, in accordance with 21
6365 regulations as subsequently prescribed. 22
6466 (9) “Contributions” means the money payments to the state employment security fund 23
6567 required by those chapters. 24
6668 (10) “Credit amount,” effective July 6, 2014, means earnings by the individual in an 25
6769 amount equal to at least eight (8) times the individual’s weekly benefit rate; 26
6870 (11) “Credit week,” prior to July 1, 2012, means any week within an individual’s base 27
6971 period in which that individual earned wages amounting to at least twenty (20) times the minimum 28
7072 hourly wage as defined in chapter 12 of this title for performing services in employment for one or 29
7173 more employers subject to chapters 42 — 44 of this title, and for the period July 1, 2012, through 30
7274 July 5, 2014, means any week within an individual’s base period in which that individual earned 31
7375 wages amounting to at least the individual’s weekly benefit rate for performing services in 32
7476 employment for one or more employers subject to chapters 42 — 44 of this title. 33
7577 (12) “Crew leader,” for the purpose of subdivision (19) of this section, means an individual 34
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7881 who: 1
7982 (i) Furnishes individuals to perform service in agricultural labor for any other person; 2
8083 (ii) Pays (either on the crew leader’s own behalf or on behalf of that other person) the 3
8184 individuals so furnished by the crew leader for the service in agricultural labor performed by them; 4
8285 and 5
8386 (iii) Has not entered into a written agreement with that other person (farm operator) under 6
8487 which that individual (crew leader) is designated as an employee of that other person (farm 7
8588 operator). 8
8689 (13) “Director” means the head of the department of labor and training or the director’s 9
8790 authorized representative. 10
8891 (14) “Domestic service employment.” “Employment” includes domestic service in a 11
8992 private home performed for a person who paid cash remuneration of one thousand dollars ($1,000) 12
9093 or more in any calendar quarter in the current calendar year, or the preceding calendar year, to 13
9194 individuals employed in that domestic service. 14
9295 (15) “Employee” means any person who is, or has been, employed by an employer subject 15
9396 to those chapters and in employment subject to those chapters. 16
9497 (16) “Employer” means: 17
9598 (i) Any employing unit that was an employer as of December 31, 1955; 18
9699 (ii) Any employing unit that for some portion of a day on and after January 1, 1956, has, 19
97100 or had, in employment, within any calendar year, one or more individuals; except, however, for 20
98101 “domestic service employment,” as defined in subdivision (14) of this section; 21
99102 (iii) For the effective period of its election pursuant to § 28-42-12, any other employing 22
100103 unit that has elected to become subject to chapters 42 — 44 of this title; or 23
101104 (iv) Any employing unit not an employer by reason of any other paragraph of this 24
102105 subdivision for which, within either the current or preceding calendar year, service is, or was, 25
103106 performed with respect to which that employing unit is liable for any federal tax against which 26
104107 credit may be taken for contributions required to be paid into this state’s employment security fund; 27
105108 or which, as a condition for approval of chapters 42 — 44 of this title for full tax credit against the 28
106109 tax imposed by the Federal Unemployment Tax Act, 26 U.S.C. § 3301 et seq., is required, pursuant 29
107110 to that act, to be an “employer” under chapters 42 — 44 of this title. 30
108111 (17) “Employing unit” means any person, partnership, association, trust, estate, or 31
109112 corporation, whether domestic or foreign, or its legal representative, trustee in bankruptcy, receiver, 32
110113 or trustee, or the legal representative of a deceased person, that has, or had, in the unit’s employ, 33
111114 one or more individuals. For the purposes of subdivision (14) of this section, a private home shall 34
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114118 be considered an employing unit only if the person for whom the domestic service was performed 1
115119 paid cash remuneration of one thousand dollars ($1,000) or more in any calendar quarter in the 2
116120 current calendar year, or the preceding calendar year, to individuals employed in that domestic 3
117121 service in that private home. 4
118122 (18)(i) “Employment,” subject to §§ 28-42-4 — 28-42-10, means service, including service 5
119123 in interstate commerce, performed for wages, or under any contract of hire, written or oral, express 6
120124 or implied; provided, that service performed shall also be deemed to constitute employment for all 7
121125 the purposes of chapters 42 — 44 of this title if performed by an individual in the employ of a 8
122126 nonprofit organization as described in subdivision (25) of this section, except as provided in § 28-9
123127 42-8(7); 10
124128 (ii) Notwithstanding any other provisions of this section, “Employment” also means 11
125129 service with respect to which a tax is required to be paid under any federal law imposing a tax 12
126130 against which credit may be taken for contributions required to be paid into this state’s employment 13
127131 security fund or which, as a condition for full tax credit against the tax imposed by the Federal 14
128132 Unemployment Tax Act, is required to be covered under chapters 42 — 44 of this title; 15
129133 (iii) Employment not to include owners. Employment does not include services performed 16
130134 by sole proprietors (owners), partners in a partnership, limited liability company — single member 17
131135 filing as a sole proprietor with the IRS, or members of a limited liability company filing as a 18
132136 partnership with the IRS. 19
133137 (19) “Employment — Crew leader.” For the purposes of subdivision (12) of this section: 20
134138 (i) Any individual who is a member of a crew furnished by a crew leader to perform service 21
135139 in agricultural labor for any other person shall be treated as an employee of that crew leader if: 22
136140 (A) That crew leader holds a valid certificate of registration under the Migrant and Seasonal 23
137141 Agricultural Worker Protection Act, 29 U.S.C. § 1801 et seq., or substantially all members of that 24
138142 crew operate or maintain tractors, mechanized harvesting, or crop-dusting equipment, or any other 25
139143 mechanized equipment that is provided by that crew leader; and 26
140144 (B) That individual is not an employee of the other person within the meaning of 27
141145 subdivision (15) of this section; and 28
142146 (ii) In the case of any individual who is furnished by a crew leader to perform service in 29
143147 agricultural labor for any other person and who is not treated as an employee of that crew leader: 30
144148 (A) That other person, and not the crew leader, shall be treated as the employer of that 31
145149 individual; and 32
146150 (B) That other person shall be treated as having paid cash remuneration to that individual 33
147151 in an amount equal to the amount of cash remuneration paid to that individual by the crew leader 34
148152
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150155 (either on the crew leader’s own behalf or on behalf of that other person) for the service in 1
151156 agricultural labor performed for that other person. 2
152157 (20) “Employment office” means a free, public-employment office, or its branch, operated 3
153158 by the director or by this state as part of a system of free, public-employment offices, or any other 4
154159 agency that the director may designate with the approval of the Social Security Administration. 5
155160 (21) “Fund” means the employment security fund established by this chapter. 6
156161 (22) “Governmental entity” means state and local governments in this state and includes 7
157162 the following: 8
158163 (i) The state of Rhode Island or any of its instrumentalities, or any political subdivision of 9
159164 the state, or any of its instrumentalities; 10
160165 (ii) Any instrumentality of more than one of these entities; or 11
161166 (iii) Any instrumentality of any of these entities and one or more other states or political 12
162167 subdivisions. 13
163168 (23) “Hospital” means an institution that has been licensed, certified, or approved by the 14
164169 department of health as a hospital. 15
165170 (24)(i) “Institution of higher education” means an educational institution in this state that: 16
166171 (A) Admits, as regular students, only individuals having a certificate of graduation from a 17
167172 high school, or the recognized equivalent of such certificate; 18
168173 (B) Is legally authorized within this state to provide a program of education beyond high 19
169174 school; 20
170175 (C) Provides: 21
171176 (I) An educational program for which it awards a bachelor’s or higher degree, or a program 22
172177 that is acceptable for full credit toward such a degree; 23
173178 (II) A program of post-graduate or post-doctoral studies; or 24
174179 (III) A program of training to prepare students for gainful employment in a recognized 25
175180 occupation; and 26
176181 (D) Is a public or other nonprofit institution. 27
177182 (ii) Notwithstanding any of the preceding provisions of this subdivision, all colleges and 28
178183 universities in this state are institutions of higher education for purposes of this section. 29
179184 (25) “Nonprofit organization” means an organization, or group of organizations, as defined 30
180185 in 26 U.S.C. § 501(c)(3), that is exempt from income tax under 26 U.S.C. § 501(a). 31
181186 (26)(i) “Partial unemployment.” An employee shall be deemed partially unemployed in 32
182187 any week of less than full-time work if the employee fails to earn in wages for that week an amount 33
183188 equal to the weekly benefit rate for total unemployment to which the employee would be entitled 34
184189
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186192 if totally unemployed and eligible. For weeks beginning on or after May 23, 2021, through June 1
187-30, 2023 2025, an employee shall be deemed partially unemployed in any week of less than full-2
188-time work if the employee fails to earn wages for that week in an amount equal to or greater than 3
189-one hundred and fifty percent (150%) of the weekly benefit rate for total unemployment to which 4
190-the employee would be entitled if totally unemployed and eligible. 5
193+30, 2023, an employee shall be deemed partially unemployed in any week of less than full-time 2
194+work if the employee fails to earn wages for that week in an amount equal to or greater than one 3
195+hundred and fifty percent (150%) of the weekly benefit rate for total unemployment to which the 4
196+employee would be entitled if totally unemployed and eligible. 5
191197 (ii) For the purposes of this subdivision and subdivision (28) of this section, “wages” 6
192198 includes only that part of remuneration for any work that is in excess of one-fifth (
193199 1
194200 /5) of the weekly 7
195201 benefit rate for total unemployment, rounded to the next lower multiple of one dollar ($1.00), to 8
196202 which the individual would be entitled if totally unemployed and eligible in any one week, and 9
197203 “services” includes only that part of any work for which remuneration in excess of one-fifth (
198204 1
199205 /5) 10
200206 of the weekly benefit rate for total unemployment, rounded to the next lower multiple of one dollar 11
201207 ($1.00), to which the individual would be entitled if totally unemployed and eligible in any one 12
202208 week is payable; provided, that nothing contained in this paragraph shall permit any individual to 13
203209 whom remuneration is payable for any work performed in any week in an amount equal to or greater 14
204210 than his or her weekly benefit rate to receive benefits under this subdivision for that week. 15
205211 (iii) Notwithstanding the foregoing, for weeks ending on or after May 23, 2021, through 16
206212 June 30, 2023, “wages” includes only that part of remuneration for any work that is in excess of 17
207213 fifty percent (50%) of the weekly benefit rate for total unemployment, rounded to the next lower 18
208214 multiple of one dollar ($1.00), to which the individual would be entitled if totally unemployed and 19
209215 eligible in any one week, and “services” includes only that part of any work for which remuneration 20
210216 in excess of fifty percent (50%) of the weekly benefit rate for total unemployment, rounded to the 21
211217 next lower multiple of one dollar ($1.00), to which the individual would be entitled if totally 22
212218 unemployed and eligible in any one week is payable. Provided, that, during the period defined in 23
213219 this subdivision, nothing contained in this subdivision shall permit any individual to whom 24
214220 remuneration is payable for any work performed in any week in an amount equal to or greater than 25
215221 one hundred fifty percent (150%) of their weekly benefit rate to receive benefits under this 26
216222 subdivision for that week. 27
217223 (iv) Notwithstanding anything contained to the contrary in this subdivision, “services,” as 28
218224 used in this subdivision and in subdivision (28) of this section, does not include services rendered 29
219225 by an individual under the exclusive supervision of any agency of this state, or any of its political 30
220226 subdivisions, by which the services are required solely for the purpose of affording relief, support, 31
221227 or assistance to needy individuals performing those services, or services performed by members of 32
222228 the national guard and organized reserves in carrying out their duties in weekly drills as members 33
223229 of those organizations. “Wages,” as used in this subdivision and in subdivision (28) of this section, 34
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226233 does not include either remuneration received by needy individuals for rendering the 1
227234 aforementioned services when that remuneration is paid exclusively from funds made available for 2
228235 that purpose out of taxes collected by this state or any of its political subdivisions, or remuneration 3
229236 received from the federal government by members of the national guard and organized reserves, as 4
230237 drill pay, including longevity pay and allowances. 5
231238 (27) “Payroll” means the total amount of all wages paid by the employer to the employer’s 6
232239 employees for employment. 7
233240 (28) “Total unemployment.” An individual shall be deemed totally unemployed in any 8
234241 week in which the individual performs no services (as used in subdivision (26) of this section) and 9
235242 for which the individual earns no wages (as used in subdivision (26) of this section), and in which 10
236243 the individual cannot reasonably return to any self-employment in which the individual has 11
237244 customarily been engaged. 12
238245 (29) “Wages” means all remuneration paid for personal services on or after January 1, 13
239246 1940, including commissions and bonuses and the cash value of all remuneration paid in any 14
240247 medium other than cash, and all other remuneration that is subject to a tax under a federal law 15
241248 imposing a tax against which credit may be taken for contributions required to be paid into a state 16
242249 unemployment fund. Gratuities customarily received by an individual in the course of the 17
243250 individual’s employment from persons other than the individual’s employing unit shall be treated 18
244251 as wages paid by the individual’s employing unit. The reasonable cash value of remuneration paid 19
245252 in any medium other than cash, and the reasonable amount of gratuities, shall be estimated and 20
246253 determined in accordance with rules prescribed by the director; except that for the purpose of this 21
247254 subdivision and of §§ 28-43-1 — 28-43-8.1, 28-43-8.2 [repealed], 28-43-8.3, 28-43-8.4 [repealed], 22
248255 28-43-8.5 — 28-43-8.10, 28-43-11 [repealed], and 28-43-12 — 28-43-14, this term does not 23
249256 include: 24
250257 (i) That part of remuneration that is paid by an employer to an individual with respect to 25
251258 employment during any calendar year, after remuneration equal to the amount of the taxable wage 26
252259 base as determined in accordance with § 28-43-7 has been paid during that calendar year by the 27
253260 employer or the employer’s predecessor to that individual; provided, that if the definition of 28
254261 “wages” as contained in the Federal Unemployment Tax Act is amended to include remuneration 29
255262 in excess of the taxable wage base for that employment, then, for the purposes of §§ 28-43-1 — 30
256263 28- 43-14, “wages” includes the remuneration as previously set forth, up to an amount equal to the 31
257264 dollar limitation specified in the federal act. For the purposes of this subdivision, “employment” 32
258265 includes services constituting employment under any employment security law of another state or 33
259266 of the federal government; 34
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262270 (ii) The amount of any payment made to, or on behalf of, an employee under a plan or 1
263271 system established by an employer that makes provision for employees generally, or for a class or 2
264272 classes of employees (including any amount paid by an employer or an employee for insurance or 3
265273 annuities, or into a fund, to provide for any such payment), on account of: 4
266274 (A) Retirement; 5
267275 (B) Sickness or accident disability; 6
268276 (C) Medical and hospitalization expenses in connection with sickness or accident 7
269277 disability; or 8
270278 (D) Death; provided, that the employee has not the: 9
271279 (I) Option to receive, instead of provision for that death benefit, any part of that payment 10
272280 or, if that death benefit is insured, any part of the premiums (or contributions to premiums) paid by 11
273281 the individual’s employer; and 12
274282 (II) Right, under the provisions of the plan or system or policy of insurance providing for 13
275283 that death benefit, to assign that benefit, or to receive a cash consideration in lieu of that benefit 14
276284 either upon the employee’s withdrawal from the plan or system providing for that benefit or upon 15
277285 termination of the plan or system or policy of insurance, or of the individual’s employment with 16
278286 that employer; 17
279287 (E) The payment by an employer (without deduction from the remuneration of the 18
280288 employee) of: 19
281289 (I) The tax imposed upon an employee under 26 U.S.C. § 3101; or 20
282290 (II) Any payment required from an employee under chapters 42 — 44 of this title. 21
283291 (iii) Any amount paid by an employee, or an amount paid by an employer, under a benefit 22
284292 plan organized under the Internal Revenue Code [26 U.S.C. § 125]. 23
285293 (30) “Week” means the seven-day (7) calendar week beginning on Sunday at 12:01 a.m. 24
286294 and ending on Saturday at 12:00 a.m. midnight. 25
287295 SECTION 2. Section 28-44-7 of the General Laws in Chapter 28-44 entitled "Employment 26
288296 Security — Benefits" is hereby amended to read as follows: 27
289297 28-44-7. Partial unemployment benefits. 28
290298 For weeks beginning on or after July 1, 1983, an individual partially unemployed and 29
291299 eligible in any week shall be paid sufficient benefits with respect to that week, so that the 30
292300 individual’s week’s wages, rounded to the next higher multiple of one dollar ($1.00), as defined in 31
293301 § 28-42-3(26), and the individual’s benefits combined will equal in amount the weekly benefit rate 32
294302 to which the individual would be entitled if totally unemployed in that week. For weeks beginning 33
295-on or after May 23, 2021, through June 30, 2023 2025, an individual partially unemployed and 34
303+on or after May 23, 2021, through June 30, 2023, an individual partially unemployed and eligible 34
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298-eligible in any week shall be paid benefits in an amount equal to the weekly benefit rate to which 1
299-the individual would be entitled if totally unemployed in that week less any wages earned in that 2
300-week, as defined in § 28-42-3(26), and the individual’s benefits combined may not exceed in 3
301-amount one hundred and fifty percent (150%) of the individual’s weekly benefit rate. 4
307+in any week shall be paid benefits in an amount equal to the weekly benefit rate to which the 1
308+individual would be entitled if totally unemployed in that week less any wages earned in that week, 2
309+as defined in § 28-42-3(26), and the individual’s benefits combined may not exceed in amount one 3
310+hundred and fifty percent (150%) of the individual’s weekly benefit rate. 4
302311 SECTION 3. This act shall take effect upon passage. 5
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308318 EXPLANATION
309319 BY THE LEGISLATIVE COUNCIL
310320 OF
311321 A N A C T
312322 RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY --
313323 GENERAL PROVISIONS
314324 ***
315325 This act would eliminate the "until June 30, 2023" sunset on the increase in the total amount 1
316326 of earnings a partial-unemployment insurance claimant can receive before entirely disqualified for 2
317327 unemployment insurance benefits and the increase in the amount of earnings disregarded when 3
318328 calculating a weekly benefit rate. 4
319329 This act would take effect upon passage. 5
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