The bill amends various sections of the General Laws to redefine the term "employee" and clarify the distinction between employees and independent contractors. The new definition of "employee" includes any person providing labor or services for remuneration, unless the hiring entity can demonstrate that the individual is free from the control and direction of the hiring entity in connection with the work, performs work that is outside the usual course of the hiring entity's business, and is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed. The bill maintains certain exclusions from the definition of "employee," such as individuals employed in domestic service, by the United States, or in voluntary services for educational, charitable, religious, or nonprofit organizations, and specifies various other categories of workers who are not considered employees.

Additionally, the bill amends the definition of "base period" for unemployment benefits, particularly for military service members, and revises the definition of "employee" by deleting previous language and replacing it with a more detailed definition to clarify the distinction between employees and independent contractors for the purposes of unemployment benefits. The bill introduces new legal language and includes deletions and insertions in the definition of "employee," aiming to clarify the classification of workers and ensure proper application of employment security provisions. It also addresses the conditions under which an individual is considered partially unemployed and how their wages are calculated for unemployment benefits, with a temporary provision affecting the calculation of partial unemployment from May 23, 2021, through June 30, 2025. The bill is set to take effect upon passage.

Statutes affected:
2236: 28-12-2, 28-29-2, 28-39-2, 28-42-3