The bill amends Sections 28-40-1 and 28-41-5 of the General Laws concerning Temporary Disability Insurance, primarily focusing on employee contributions and benefit rates. It raises the taxable wage base for employee contributions from $38,000 to $100,000, ensuring contributions are calculated based on a higher wage threshold. Additionally, a new method for determining the taxable wage base will be established annually, linked to the maximum weekly benefit amount. The employee contribution rate will be based on the fund cost rate, which is calculated from disbursements and taxable wages over specified periods. The bill also revises the weekly benefit rate for temporary disability, introducing a tiered structure that starts at 4.62% and increases to 5.38% and 5.77% for benefit years beginning in 2026 and 2027, respectively. A dependent's allowance is also introduced for eligible individuals, with these changes set to take effect on January 1, 2025.

Additionally, the bill proposes amendments to the Temporary Caregiver Insurance Program, increasing the taxable wage base and modifying the duration of caregiver benefits. The maximum duration of caregiver benefits will rise from eight weeks in 2026 to twelve weeks by 2028. Employees are required to provide a minimum of thirty days' written notice to their employer before taking family leave, with exceptions for unforeseen circumstances. The bill clarifies that employees cannot claim both temporary caregiver and temporary disability benefits for the same purpose and ensures that those on caregiver leave can return to their previous or an equivalent position, while also mandating the maintenance of health benefits during the leave. These provisions are set to take effect on January 1, 2026, and aim to align with existing federal and state family leave laws.

Statutes affected:
974: 28-40-1