The bill amends the definition of "employee" in Section 28-12-2 of the General Laws, which pertains to minimum wages. It specifies that an "employee" is any person providing labor or services for remuneration, not an independent contractor, unless the hiring entity can satisfy three conditions related to the individual's autonomy, work outside the usual course of the hiring entity's business, and engagement in an independently established trade. The bill also revises the definitions related to workers' compensation, excluding certain roles like shareholders and directors unless under a contract of service, and includes members of police and aircraft rescue and firefighting units of the Rhode Island airport corporation. It mandates that special employers obtain insurance coverage certification from general employers, with failure resulting in the special employer being deemed the employer.

Furthermore, the bill updates the definition of "base period" for unemployment benefits, particularly for military service members, by providing an alternate base period for those who are monetarily ineligible under the current definition. It also clarifies that individuals who become corporate officers after being employees will remain employees unless coverage is waived, and that benefits received by volunteers are taxable but not considered wages for benefits qualification. The bill inserts new definitions and updates existing ones in Section 28-42-3 of the General Laws to clarify terms used in employment security provisions, including a new definition of "employee" that distinguishes them from independent contractors. It also revises the definition of "Employment" to include services performed for wages or under any contract of hire, and specifies what is considered employment for tax purposes. The bill is set to take effect upon passage.

Statutes affected:
2470: 28-12-2, 28-29-2, 28-39-2, 28-42-3