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SB 2737

AN ACT RELATING TO LABOR AND LABOR RELATIONS -- TEMPORARY DISABILITY INSURANCE -- GENERAL PROVISIONS

2026 Regular Session Introduced by Jake Bissaillon and 9 co-sponsors

Rhode Island extends and broadens TDI/TCI with longer caregiver leave, adds self-employed opt-in, and expands eligible family relationships for benefits.

05/29/2026 Referred to House Labor
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Bill Summary · SB 2737

Summary of SB 2737 (Rhode Island, 2026)

Title: AN ACT RELATING TO LABOR AND LABOR RELATIONS — TEMPORARY DISABILITY INSURANCE — GENERAL PROVISIONS

Jurisdiction: Rhode Island
Introduced: February 27, 2026
Sponsors: Senators Lawson, Ciccone, Tikoian, Burke, Bissaillon, LaMountain, Murray, Britto, McKenney, Felag (and others)

Committee Action: Senate Labor & Gaming (as of latest action, held for further study)

Effective Date: Upon passage

1) Purpose and overall intent

  • The bill expands and clarifies Rhode Island’s Temporary Disability Insurance (TDI) program, adding:

    • A new Temporary Caregiver Insurance (TCI) framework with broader eligibility and longer benefit periods.
    • A path for self-employed individuals to opt into TDI/TCI coverage.
    • An expansion of the list of family relationships eligible for temporary caregiver benefits (adding grandchildren and care recipients).

  • It also updates funding, penalties, wage-base calculations, and eligibility rules related to contributions, reporting, and benefit administration.

2) Key provisions and changes

A. Penalties and collection (Sec. 28-39-26)

  • Employers or self-employed individuals who fail to file required reports or to pay required contributions face:
    • A $10 penalty for each filing failure.
    • An additional 10% of the amount due for each delinquent contribution.
  • Penalties go into the Temporary Disability Insurance Reserve Fund.
  • If penalties are not paid when assessed, they may be collected by civil action.

B. Contribution base and rates (Sec. 28-40-1; Sec. 28-40-9)

  • The taxable wage base for contributions:
    • Is the greater of $100,000 or the amount needed to qualify for the maximum weekly benefit amount and maximum duration under TDI.
    • Calculation method is specified: annual adjustments based on maximum weekly benefit, with rounding rules.
  • Employee contribution:
    • Based on the fund cost rate, calculated annually (by Nov. 15) using the prior 12 months’ disbursements and wages, with rounding to the nearest 0.1%.
  • Self-employed residents:
    • Self-employed Rhode Island residents without qualifying prior wages may be subject to chapters 39–41 by enrolling with the department.
    • A 12-month waiting period of contributions is required before benefits eligibility for those self-employed residents lacking prior qualifying wages.
  • Delinquent payments accrue interest at 1.5% per month (as to delinquent employer payments).

C. Temporary Caregiver Insurance (TCI) provisions (Ch. 28-41; Secs. 28-41-34 to -35)

  • Purpose: Establish a Temporary Caregiver Insurance program to provide wage replacement for:
    • Bonding with a newborn or recently placed adopted/foster child (including bonds with a child in a domestic partner context).
    • Caring for a child, grandchild, parent, parent-in-law, care recipient, grandparent, spouse, domestic partner, or sibling with a serious health condition.
    • Donor-related leave for bone marrow transplant donors or living organ donors.
  • Eligibility and benefits:
    • Benefits occur in weeks when the employee cannot perform regular work due to the above circumstances.
    • Written intent required from the employee to take family leave, with at least 30 days’ notice (except for unforeseeable changes or emergencies).
    • TC benefits cannot be taken concurrently with TDI benefits for the same purpose.
    • Benefit duration: increases over time
    • 2014: max 4 weeks/year
    • 2022: max 5 weeks
    • 2023: max 6 weeks
    • 2025: max 7 weeks
    • 2026: max 8 weeks
    • 2027: max 10 weeks
    • 2028: max 12 weeks
    • Combined TCI and TDI benefits cannot exceed 30 weeks in a benefit year, or 30 times the weekly benefit rate.
    • Job restoration: Employees on TC leave must be restored to their prior or equivalent position after leave.
    • Health benefits: Employers must maintain health coverage during TC leave; employee remains responsible for their share of premiums.
    • Waiting periods: The TC program follows a waiting period schedule; the law allows coordination with FMLA and RI parental/family leave acts with potential concurrent use restrictions.
    • Donor-specific coverage: For bone marrow donors, up to 5 business days of recovery; for living organ donors, up to 30 business days.
  • Definitions: The bill adds/clarifies numerous terms related to caregiving, family relationships, and care recipient status (including grandchildren and others who stand in loco parentis).

D. Non-covered residents and self-employed opt-in (Sec. 28-39-3.4)

  • Self-employed Rhode Island residents may enroll to become subject to TDI/TCI chapters.
  • For self-employed residents without prior qualifying wages, a 12-month contribution period is required before benefits eligibility.
  • Non-covered residents who enroll will be subject to the chapters consistent with enrollment and rules.

3) Who would be affected

  • Employers subject to Rhode Island TDI (ch. 28-39) and those with employees covered by chapters 39–41.
  • Self-employed Rhode Island residents (potentially new program participants through opt-in enrollment).
  • Employees seeking family-related leave (TCI) for caregiving, bonding with a newborn/adopted child, or donating bone marrow/living organ donation.
  • Beneficiaries who have existing health benefits through employer plans (with continuation during TC leave, subject to premium payments by employees).
  • Recipients of TDI/TCI benefits and their employers, due to updated benefit duration limits and interaction with other leave laws (FMLA and RI Family/Parental Leave Act).

4) Procedural and timeline aspects

  • Effective Date: The act takes effect upon passage.
  • Benefit timelines for TCI:
    • Gradual increases in maximum weeks, culminating in 12 weeks by 2028, with ongoing annual adjustments.
  • Interplay with other laws:
    • TC leave provisions align with FMLA and Rhode Island parental/family medical leave acts, including possible concurrent use restrictions.
  • Enforcement and penalties:
    • Penalties for late/filed reports and late contributions, with enforcement through civil actions if penalties are not paid.

5) Explanatory notes

  • The Explanatory section notes:
    • Expansion of temporary caregiver benefits to include grandchildren and care recipients.
    • Gradual increase in maximum TC leave weeks (to 10 weeks in 2027 and 12 weeks in 2028).
    • Introduction of opt-in for self-employed workers to participate in TDI/TCI.

This bill aims to broaden wage-replacement protections for workers in Rhode Island by expanding caregiving leave, extending benefit durations over time, and enabling self-employed individuals to opt into TDI/TCI coverage, alongside governance updates on contributions, penalties, and eligibility.

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

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