Rhode Island 2025 Regular Session

Rhode Island House Bill H5448 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22
33
44
55 2025 -- H 5448
66 ========
77 LC001339
88 ========
99 S T A T E O F R H O D E I S L A N D
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2025
1212 ____________
1313
1414 A N A C T
1515 RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY --
1616 GENERAL PROVISIONS
1717 Introduced By: Representatives McEntee, Caldwell, Craven, Morales, Kislak, Diaz,
1818 Slater, Bennett, Edwards, and Noret
1919 Date Introduced: February 12, 2025
2020 Referred To: House Labor
2121 (Dept. of Labor and Traning)
2222
2323 It is enacted by the General Assembly as follows:
2424 SECTION 1. Section 28-42-3 of the General Laws in Chapter 28-42 entitled "Employment 1
2525 Security — General Provisions" is hereby amended to read as follows: 2
2626 28-42-3. Definitions. 3
2727 The following words and phrases, as used in chapters 42 — 44 of this title, have the 4
2828 following meanings unless the context clearly requires otherwise: 5
2929 (1) “Administration account” means the employment security administration account 6
3030 established by this chapter. 7
3131 (2) “Average weekly wage” means the amount determined by dividing the individual’s 8
3232 total wages earned for service performed in employment within the individual’s base period by the 9
3333 number of that individual’s credit weeks within the individual’s base period. 10
3434 (3) “Base period,” with respect to an individual’s benefit year, means the first four (4), of 11
3535 the most recently completed five (5) calendar quarters immediately preceding the first day of an 12
3636 individual’s benefit year. For any individual’s benefit year, and for any individual deemed 13
3737 monetarily ineligible for benefits for the “base period” as defined in this subdivision, the 14
3838 department shall make a re-determination of entitlement based upon the alternate base period that 15
3939 consists of the last four (4) completed calendar quarters immediately preceding the first day of the 16
4040 claimant’s benefit year. Notwithstanding anything contained to the contrary in this subdivision, the 17
4141 base period shall not include any calendar quarter previously used to establish a valid claim for 18
4242
4343
4444 LC001339 - Page 2 of 9
4545 benefits; provided, that notwithstanding any provision of chapters 42 — 44 of this title to the 1
4646 contrary, for the benefit years beginning on or after October 4, 1992, whenever an individual who 2
4747 has received workers’ compensation benefits is entitled to reinstatement under § 28-33-47, but the 3
4848 position to which reinstatement is sought does not exist or is not available, the individual’s base 4
4949 period shall be determined as if the individual filed for benefits on the date of the injury. 5
5050 (4) “Benefit” means the money payable to an individual as compensation for the 6
5151 individual’s wage losses due to unemployment as provided in these chapters. 7
5252 (5) “Benefit credits” means the total amount of money payable to an individual as benefits, 8
5353 as determined by § 28-44-9. 9
5454 (6) “Benefit rate” means the money payable to an individual as compensation, as provided 10
5555 in chapters 42 — 44 of this title, for the individual’s wage losses with respect to any week of total 11
5656 unemployment. 12
5757 (7) “Benefit year,” with respect to any individual who does not already have a benefit year 13
5858 in effect and who files a valid claim for benefits, means fifty-two (52) consecutive calendar weeks, 14
5959 the first of which shall be the week containing the day as of which he or she first files a valid claim 15
6060 in accordance with regulations adopted as hereinafter prescribed; provided, that the benefit year 16
6161 shall be fifty-three (53) weeks if the filing of a new, valid claim would result in overlapping any 17
6262 quarter of the base period of a prior new claim previously filed by the individual. In no event shall 18
6363 a new benefit year begin prior to the Sunday next following the end of the old benefit year. 19
6464 (8) “Calendar quarter” means the period of three (3) consecutive calendar months ending 20
6565 March 31, June 30, September 30, and December 31; or the equivalent thereof, in accordance with 21
6666 regulations as subsequently prescribed. 22
6767 (9) “Contributions” means the money payments to the state employment security fund 23
6868 required by those chapters. 24
6969 (10) “Credit amount,” effective July 6, 2014, means earnings by the individual in an 25
7070 amount equal to at least eight (8) times the individual’s weekly benefit rate. 26
7171 (11) “Credit week,” prior to July 1, 2012, means any week within an individual’s base 27
7272 period in which that individual earned wages amounting to at least twenty (20) times the minimum 28
7373 hourly wage as defined in chapter 12 of this title for performing services in employment for one or 29
7474 more employers subject to chapters 42 — 44 of this title, and for the period July 1, 2012, through 30
7575 July 5, 2014, means any week within an individual’s base period in which that individual earned 31
7676 wages amounting to at least the individual’s weekly benefit rate for performing services in 32
7777 employment for one or more employers subject to chapters 42 — 44 of this title. 33
7878 (12) “Crew leader,” for the purpose of subdivision (19) of this section, means an individual 34
7979
8080
8181 LC001339 - Page 3 of 9
8282 who: 1
8383 (i) Furnishes individuals to perform service in agricultural labor for any other person; 2
8484 (ii) Pays (either on the crew leader’s own behalf or on behalf of that other person) the 3
8585 individuals so furnished by the crew leader for the service in agricultural labor performed by them; 4
8686 and 5
8787 (iii) Has not entered into a written agreement with that other person (farm operator) under 6
8888 which that individual (crew leader) is designated as an employee of that other person (farm 7
8989 operator). 8
9090 (13) “Director” means the head of the department of labor and training or the director’s 9
9191 authorized representative. 10
9292 (14) “Domestic service employment.” “Employment” includes domestic service in a 11
9393 private home performed for a person who paid cash remuneration of one thousand dollars ($1,000) 12
9494 or more in any calendar quarter in the current calendar year, or the preceding calendar year, to 13
9595 individuals employed in that domestic service. 14
9696 (15) “Employee” means any person who is, or has been, employed by an employer subject 15
9797 to those chapters and in employment subject to those chapters. 16
9898 (16) “Employer” means: 17
9999 (i) Any employing unit that was an employer as of December 31, 1955; 18
100100 (ii) Any employing unit that for some portion of a day on and after January 1, 1956, has, 19
101101 or had, in employment, within any calendar year, one or more individuals; except, however, for 20
102102 “domestic service employment,” as defined in subdivision (14) of this section; 21
103103 (iii) For the effective period of its election pursuant to § 28-42-12, any other employing 22
104104 unit that has elected to become subject to chapters 42 — 44 of this title; or 23
105105 (iv) Any employing unit not an employer by reason of any other paragraph of this 24
106106 subdivision for which, within either the current or preceding calendar year, service is, or was, 25
107107 performed with respect to which that employing unit is liable for any federal tax against which 26
108108 credit may be taken for contributions required to be paid into this state’s employment security fund; 27
109109 or which, as a condition for approval of chapters 42 — 44 of this title for full tax credit against the 28
110110 tax imposed by the Federal Unemployment Tax Act, 26 U.S.C. § 3301 et seq., is required, pursuant 29
111111 to that act, to be an “employer” under chapters 42 — 44 of this title. 30
112112 (17) “Employing unit” means any person, partnership, association, trust, estate, or 31
113113 corporation, whether domestic or foreign, or its legal representative, trustee in bankruptcy, receiver, 32
114114 or trustee, or the legal representative of a deceased person, that has, or had, in the unit’s employ, 33
115115 one or more individuals. For the purposes of subdivision (14) of this section, a private home shall 34
116116
117117
118118 LC001339 - Page 4 of 9
119119 be considered an employing unit only if the person for whom the domestic service was performed 1
120120 paid cash remuneration of one thousand dollars ($1,000) or more in any calendar quarter in the 2
121121 current calendar year, or the preceding calendar year, to individuals employed in that domestic 3
122122 service in that private home. 4
123123 (18)(i) “Employment,” subject to §§ 28-42-4 — 28-42-10, means service, including service 5
124124 in interstate commerce, performed for wages, or under any contract of hire, written or oral, express 6
125125 or implied; provided, that service performed shall also be deemed to constitute employment for all 7
126126 the purposes of chapters 42 — 44 of this title if performed by an individual in the employ of a 8
127127 nonprofit organization as described in subdivision (25) of this section, except as provided in § 28-9
128128 42-8(7); 10
129129 (ii) Notwithstanding any other provisions of this section, “Employment” also means 11
130130 service with respect to which a tax is required to be paid under any federal law imposing a tax 12
131131 against which credit may be taken for contributions required to be paid into this state’s employment 13
132132 security fund or which, as a condition for full tax credit against the tax imposed by the Federal 14
133133 Unemployment Tax Act, is required to be covered under chapters 42 — 44 of this title; 15
134134 (iii) Employment not to include owners. Employment does not include services performed 16
135135 by sole proprietors (owners), partners in a partnership, limited liability company — single member 17
136136 filing as a sole proprietor with the IRS, or members of a limited liability company filing as a 18
137137 partnership with the IRS. 19
138138 (19) “Employment — Crew leader.” For the purposes of subdivision (12) of this section: 20
139139 (i) Any individual who is a member of a crew furnished by a crew leader to perform service 21
140140 in agricultural labor for any other person shall be treated as an employee of that crew leader if: 22
141141 (A) That crew leader holds a valid certificate of registration under the Migrant and Seasonal 23
142142 Agricultural Worker Protection Act, 29 U.S.C. § 1801 et seq., or substantially all members of that 24
143143 crew operate or maintain tractors, mechanized harvesting, or crop-dusting equipment, or any other 25
144144 mechanized equipment that is provided by that crew leader; and 26
145145 (B) That individual is not an employee of the other person within the meaning of 27
146146 subdivision (15) of this section; and 28
147147 (ii) In the case of any individual who is furnished by a crew leader to perform service in 29
148148 agricultural labor for any other person and who is not treated as an employee of that crew leader: 30
149149 (A) That other person, and not the crew leader, shall be treated as the employer of that 31
150150 individual; and 32
151151 (B) That other person shall be treated as having paid cash remuneration to that individual 33
152152 in an amount equal to the amount of cash remuneration paid to that individual by the crew leader 34
153153
154154
155155 LC001339 - Page 5 of 9
156156 (either on the crew leader’s own behalf or on behalf of that other person) for the service in 1
157157 agricultural labor performed for that other person. 2
158158 (20) “Employment office” means a free, public-employment office, or its branch, operated 3
159159 by the director or by this state as part of a system of free, public-employment offices, or any other 4
160160 agency that the director may designate with the approval of the Social Security Administration. 5
161161 (21) “Fund” means the employment security fund established by this chapter. 6
162162 (22) “Governmental entity” means state and local governments in this state and includes 7
163163 the following: 8
164164 (i) The state of Rhode Island or any of its instrumentalities, or any political subdivision of 9
165165 the state, or any of its instrumentalities; 10
166166 (ii) Any instrumentality of more than one of these entities; or 11
167167 (iii) Any instrumentality of any of these entities and one or more other states or political 12
168168 subdivisions. 13
169169 (23) “Hospital” means an institution that has been licensed, certified, or approved by the 14
170170 department of health as a hospital. 15
171171 (24)(i) “Institution of higher education” means an educational institution in this state that: 16
172172 (A) Admits, as regular students, only individuals having a certificate of graduation from a 17
173173 high school, or the recognized equivalent of such certificate; 18
174174 (B) Is legally authorized within this state to provide a program of education beyond high 19
175175 school; 20
176176 (C) Provides: 21
177177 (I) An educational program for which it awards a bachelor’s or higher degree, or a program 22
178178 that is acceptable for full credit toward such a degree; 23
179179 (II) A program of post-graduate or post-doctoral studies; or 24
180180 (III) A program of training to prepare students for gainful employment in a recognized 25
181181 occupation; and 26
182182 (D) Is a public or other nonprofit institution. 27
183183 (ii) Notwithstanding any of the preceding provisions of this subdivision, all colleges and 28
184184 universities in this state are institutions of higher education for purposes of this section. 29
185185 (25) “Nonprofit organization” means an organization, or group of organizations, as defined 30
186186 in 26 U.S.C. § 501(c)(3), that is exempt from income tax under 26 U.S.C. § 501(a). 31
187187 (26)(i) “Partial unemployment.” An employee shall be deemed partially unemployed in 32
188188 any week of less than full-time work if the employee fails to earn in wages for that week an amount 33
189189 equal to the weekly benefit rate for total unemployment to which the employee would be entitled 34
190190
191191
192192 LC001339 - Page 6 of 9
193193 if totally unemployed and eligible. For weeks beginning on or after May 23, 2021, through June 1
194194 30, 2025, an employee shall be deemed partially unemployed in any week of less than full-time 2
195195 work if the employee fails to earn wages for that week in an amount equal to or greater than one 3
196196 hundred and fifty percent (150%) of the weekly benefit rate for total unemployment to which the 4
197197 employee would be entitled if totally unemployed and eligible. 5
198198 (ii) For the purposes of this subdivision and subdivision (28) of this section, “wages” 6
199199 includes only that part of remuneration for any work that is in excess of one-fifth (⅕) of the weekly 7
200200 benefit rate for total unemployment, rounded to the next lower multiple of one dollar ($1.00), to 8
201201 which the individual would be entitled if totally unemployed and eligible in any one week, and 9
202202 “services” includes only that part of any work for which remuneration in excess of one-fifth (⅕) of 10
203203 the weekly benefit rate for total unemployment, rounded to the next lower multiple of one dollar 11
204204 ($1.00), to which the individual would be entitled if totally unemployed and eligible in any one 12
205205 week is payable; provided, that nothing contained in this paragraph shall permit any individual to 13
206206 whom remuneration is payable for any work performed in any week in an amount equal to or greater 14
207207 than his or her weekly benefit rate to receive benefits under this subdivision for that week. 15
208208 (iii) Notwithstanding the foregoing, for weeks ending on or after May 23, 2021, through 16
209209 June 30, 2025, “wages” includes only that part of remuneration for any work that is in excess of 17
210210 fifty percent (50%) of the weekly benefit rate for total unemployment, rounded to the next lower 18
211211 multiple of one dollar ($1.00), to which the individual would be entitled if totally unemployed and 19
212212 eligible in any one week, and “services” includes only that part of any work for which remuneration 20
213213 in excess of fifty percent (50%) of the weekly benefit rate for total unemployment, rounded to the 21
214214 next lower multiple of one dollar ($1.00), to which the individual would be entitled if totally 22
215215 unemployed and eligible in any one week is payable. Provided, that, during the period defined in 23
216216 this subdivision, nothing contained in this subdivision shall permit any individual to whom 24
217217 remuneration is payable for any work performed in any week in an amount equal to or greater than 25
218218 one hundred fifty percent (150%) of their weekly benefit rate to receive benefits under this 26
219219 subdivision for that week. 27
220220 (iv) Notwithstanding anything contained to the contrary in this subdivision, “services,” as 28
221221 used in this subdivision and in subdivision (28) of this section, does not include services rendered 29
222222 by an individual under the exclusive supervision of any agency of this state, or any of its political 30
223223 subdivisions, by which the services are required solely for the purpose of affording relief, support, 31
224224 or assistance to needy individuals performing those services, or services performed by members of 32
225225 the national guard and organized reserves in carrying out their duties in weekly drills as members 33
226226 of those organizations. “Wages,” as used in this subdivision and in subdivision (28) of this section, 34
227227
228228
229229 LC001339 - Page 7 of 9
230230 does not include either remuneration received by needy individuals for rendering the 1
231231 aforementioned services when that remuneration is paid exclusively from funds made available for 2
232232 that purpose out of taxes collected by this state or any of its political subdivisions, or remuneration 3
233233 received from the federal government by members of the national guard and organized reserves, as 4
234234 drill pay, including longevity pay and allowances. 5
235235 (27) “Payroll” means the total amount of all wages paid by the employer to the employer’s 6
236236 employees for employment. 7
237237 (28) “Total unemployment.” An individual shall be deemed totally unemployed in any 8
238238 week in which the individual performs no services (as used in subdivision (26) of this section) and 9
239239 for which the individual earns no wages (as used in subdivision (26) of this section), and in which 10
240240 the individual cannot reasonably return to any self-employment in which the individual has 11
241241 customarily been engaged. 12
242242 (29) “Wages” means all remuneration paid for personal services on or after January 1, 13
243243 1940, including commissions and bonuses and the cash value of all remuneration paid in any 14
244244 medium other than cash, and all other remuneration that is subject to a tax under a federal law 15
245245 imposing a tax against which credit may be taken for contributions required to be paid into a state 16
246246 unemployment fund. Gratuities customarily received by an individual in the course of the 17
247247 individual’s employment from persons other than the individual’s employing unit shall be treated 18
248248 as wages paid by the individual’s employing unit. The reasonable cash value of remuneration paid 19
249249 in any medium other than cash, and the reasonable amount of gratuities, shall be estimated and 20
250250 determined in accordance with rules prescribed by the director; except that for the purpose of this 21
251251 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
252252 28-43-8.5 — 28-43-8.10, 28-43-11 [repealed], and 28-43-12 — 28-43-14, this term does not 23
253253 include: 24
254254 (i) That part of remuneration that is paid by an employer to an individual with respect to 25
255255 employment during any calendar year, after remuneration equal to the amount of the taxable wage 26
256256 base as determined in accordance with § 28-43-7 has been paid during that calendar year by the 27
257257 employer or the employer’s predecessor to that individual; provided, that if the definition of 28
258258 “wages” as contained in the Federal Unemployment Tax Act is amended to include remuneration 29
259259 in excess of the taxable wage base for that employment, then, for the purposes of §§ 28-43-1 — 30
260260 28-43-14, “wages” includes the remuneration as previously set forth, up to an amount equal to the 31
261261 dollar limitation specified in the federal act. For the purposes of this subdivision, “employment” 32
262262 includes services constituting employment under any employment security law of another state or 33
263263 of the federal government; 34
264264
265265
266266 LC001339 - Page 8 of 9
267267 (ii) The amount of any payment made to, or on behalf of, an employee under a plan or 1
268268 system established by an employer that makes provision for employees generally, or for a class or 2
269269 classes of employees (including any amount paid by an employer or an employee for insurance or 3
270270 annuities, or into a fund, to provide for any such payment), on account of: 4
271271 (A) Retirement; 5
272272 (B) Sickness or accident disability; 6
273273 (C) Medical and hospitalization expenses in connection with sickness or accident 7
274274 disability; or 8
275275 (D) Death; provided, that the employee has not the: 9
276276 (I) Option to receive, instead of provision for that death benefit, any part of that payment 10
277277 or, if that death benefit is insured, any part of the premiums (or contributions to premiums) paid by 11
278278 the individual’s employer; and 12
279279 (II) Right, under the provisions of the plan or system or policy of insurance providing for 13
280280 that death benefit, to assign that benefit, or to receive a cash consideration in lieu of that benefit 14
281281 either upon the employee’s withdrawal from the plan or system providing for that benefit or upon 15
282282 termination of the plan or system or policy of insurance, or of the individual’s employment with 16
283283 that employer; 17
284284 (E) The payment by an employer (without deduction from the remuneration of the 18
285285 employee) of: 19
286286 (I) The tax imposed upon an employee under 26 U.S.C. § 3101; or 20
287287 (II) Any payment required from an employee under chapters 42 — 44 of this title. 21
288288 (iii) Any amount paid by an employee, or an amount paid by an employer, under a benefit 22
289289 plan organized under the Internal Revenue Code [26 U.S.C. § 125]. 23
290290 (30) “Week” means the seven-day (7) calendar week beginning on Sunday at 12:01 a.m. 24
291291 and ending on Saturday at 12:00 a.m. midnight. 25
292292 SECTION 2. This act shall take effect upon passage. 26
293293 ========
294294 LC001339
295295 ========
296296
297297
298298 LC001339 - Page 9 of 9
299299 EXPLANATION
300300 BY THE LEGISLATIVE COUNCIL
301301 OF
302302 A N A C T
303303 RELATING TO LABOR AND LABOR RELA TIONS -- EMPLOYMENT SECURITY --
304304 GENERAL PROVISIONS
305305 ***
306306 This act would eliminate the until June 30, 2025 sunset on the increase in the total amount 1
307307 of earnings a partial-unemployment insurance claimant can receive before being entirely 2
308308 disqualified for unemployment insurance benefits and the increase in the amount of earnings 3
309309 disregarded when calculating a weekly benefit rate. 4
310310 This act would take effect upon passage. 5
311311 ========
312312 LC001339
313313 ========