What happened?
 
On June 25, 2024, the Governor of Rhode Island signed HB 7171 into law, expanding temporary caregiver benefits.

Quick Summary:

• Rhode Island House Bill 7171 expands temporary caregiver benefits, increasing the maximum duration from six to eight weeks over two years. It also raises dependents’ allowances and ensures job protection and health benefits during caregiver leave.

What are the details? 

• Overview: Rhode Island HB 7171 is a law that expands temporary caregiver benefits under the Temporary Disability Insurance (TDI) program and applies to most private-sector employers in Rhode Island who are required to provide TDI coverage to their employees.
  
• Current Law: Under the existing Temporary Caregiver Insurance (TCI) law, employees can take up to six weeks of job-protected leave with partial wage replacement from the Rhode Island Department of Labor and Training (DLT). This leave can be used to bond with a newborn or newly placed child or to care for a family member with a serious health condition.

1. Weekly Benefit Rate and Dependents’ Allowances:
   
   
   • The weekly benefit rate is calculated as 4.62% of the highest wages earned in a calendar quarter.
   • Dependents’ allowances have been increased from $10 to $20 or 7% of the individual’s benefit rate, whichever is greater, for each dependent child under 18 or dependent due to incapacity.
     
2. Temporary Caregiver Benefits:
   
   
   • Eligibility: Employees can receive benefits for bonding with a newborn or newly placed child or caring for a seriously ill family member.
   • Benefit Duration: The maximum duration for temporary caregiver benefits is increased incrementally:
     
     Seven weeks (starting January 1, 2025)
     Eight weeks (starting January 1, 2026)
     
   • Concurrent Benefits: Employees cannot receive both temporary caregivers and temporary disability benefits simultaneously for the same purpose.
   • Notice: Employees must give their employer written notice at least 30 days before starting temporary caregiver leave. Failure to do so may delay or reduce benefits unless the leave is unforeseeable or the timing changes unexpectedly.
     
3. Job Protection and Health Benefits:
   
   
   • Employees are entitled to job restoration to the same or equivalent position after the leave.
   • Employers must maintain existing health benefits during the leave, with employees continuing to pay their share of the costs.
     
4. Implementation: The changes will take effect on January 1, 2025, with the increase in TCI leave to seven weeks, and further to eight weeks starting January 1, 2026.

 
Business Considerations

• Update internal policies to reflect dependent allowance increases.
• Review and adjust payroll systems to reflect the updated benefit rate and calculations.
• Ensure health benefits are maintained for employees on temporary caregiver leave and any associated, relevant guidelines.

 
Source References

• RI House Bill 7171

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.