The bill amends various sections of the General Laws to redefine the term "employee" and clarify the distinction between employees and independent contractors. It inserts a new legal definition of "employee" into the minimum wage and workers' compensation laws, specifying that an employee is a person providing labor or services for remuneration unless the hiring entity can demonstrate that the person meets three specific conditions that qualify them as an independent contractor. The bill maintains a list of individuals who are not considered employees, such as those in domestic service, employed by the United States, and engaged in voluntary services for non-profit organizations, among others. It also provides definitions for terms like "earnings capacity," "functional impairment," and conditions for regaining earning capacity after an injury.

Furthermore, the bill revises the definition of "employee" for the purposes of unemployment benefits, deleting the previous language and replacing it with a more detailed definition that includes the same three conditions for independent contractor status. It also amends the definition of "base period" for unemployment benefits, especially for military service members, and introduces new definitions for various terms related to employment security provisions. The bill specifies what constitutes "Employment" and "Partial unemployment," adjusting the threshold for partial unemployment based on wages earned. The act is set to take effect upon passage, indicating immediate changes to the law once enacted.

Statutes affected:
430: 28-12-2, 28-29-2, 28-39-2, 28-42-3