This bill amends the General Laws regarding Temporary Disability Insurance Contributions and Benefits, significantly increasing the taxable wage base from $38,000 to $100,000 or the annual earnings needed to qualify for the maximum weekly benefit amount. The employee contribution rate will be calculated based on the fund cost rate, which is determined annually.

Additionally, the bill establishes changes to the weekly benefit rates for individuals on temporary disability due to sickness, specifying different percentages for various benefit years: 4.62% for benefit years beginning on or after October 7, 1990, and prior to January 1, 2027; 5.38% for benefit years beginning on or after January 1, 2027, and prior to January 1, 2028; and 5.77% for benefit years beginning on or after January 1, 2028.

The bill also introduces a temporary caregiver insurance program, which provides wage replacement benefits for employees taking time off to care for a seriously ill family member or to bond with a new child. It expands the definition of eligible family members to include siblings and outlines the conditions under which employees can claim these benefits. The maximum duration of temporary caregiver benefits will be amended for the years 2027, 2028, and beyond.

The act is set to take effect on January 1, 2026.

Statutes affected:
6066  SUB A: 28-40-1