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SB 974

AN ACT RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY INSURANCE --CONTRIBUTIONS

2025 Regular Session Introduced by Jake Bissaillon and 9 co-sponsors

Rhode Island enacted law adjusting temporary disability insurance contribution rates between employees and employers to restructure program funding.

06/26/2025 Signed by Governor
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Bill Summary · SB 974

Legislative bill overview

SB 974 modifies Rhode Island's temporary disability insurance (TDI) system by adjusting employer and employee contribution rates. The bill alters how costs are distributed between workers and employers for the state's short-term disability coverage program, which provides income replacement when workers are temporarily unable to work due to non-work-related illness or injury.

Why is this important

Temporary disability insurance directly affects worker financial security during medical absences and influences business operational costs. Changes to contribution rates impact both household budgets (through payroll deductions) and employer expenses, making this relevant to Rhode Island's workforce and business competitiveness. The program serves as a safety net for workers in one of the few U.S. states with mandatory TDI.

Potential points of contention

  • Cost allocation between workers and employers — Shifting contribution percentages between employee payroll deductions and employer payments affects take-home pay versus labor costs, creating distributional questions about who bears the burden
  • Program sustainability and adequacy — Changes to contribution rates raise questions about whether the fund maintains sufficient reserves for claims while remaining affordable for both parties
  • Competitive impact on business — Increased employer contributions could affect Rhode Island's attractiveness relative to neighboring states with different TDI funding models

Compiled from official sources — confirm details with the bill’s official record.

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