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SB 2927

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

2026 Regular Session Introduced by John Burke and 9 co-sponsors

Rhode Island TDI will cover all state employees from 2027, with employer and employee contributions and benefits aligned to the existing TDI framework.

04/29/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2927

Summary of SB 2927 (Rhode Island) – Temporary Disability Insurance – General Provisions

Date introduced: March 4, 2026

Jurisdiction: Rhode Island
Committee: Senate Labor & Gaming
Sponsors: Vargas, Thompson, LaMountain, Quezada, Lauria, DiPalma, Pearson, Kallman, Mack, Burke (plus several co-sponsors)

Purpose and intent
- Establish mandatory participation in Rhode Island’s Temporary Disability Insurance (TDI) program for state employees, effective January 1, 2027.
- Extend TDI coverage to all State of Rhode Island employees on wages earned on or after that date, aligning state employment with the same TDI framework that applies to other covered workers.

Key provisions and changes

1) Definitions and framework (Section 1)
- The bill amends Section 28-39-2 to update and clarify definitions used across TDI provisions (chapters 39–41), including:
- Average weekly wage, base period, benefit, benefit credits, benefit rate, and benefit year.
- Credit weeks, calendar quarter, and week.
- Employment, employer, employing unit, and services as they relate to eligibility and calculation of benefits.
- Partial unemployment due to sickness: establishes how partial weeks of sickness are treated for benefit purposes, including wage thresholds relative to the weekly benefit rate (with specific rounding rules).
- The reserve fund, the fund, and taxes as payments to the TDI fund or reserve fund.
- Ensures consistent interpretation of wages, benefits, and weeks for sickness-related unemployment.

2) Mandatory coverage of state employees (Section 2)
- New Section 28-41-43: Mandatory coverage for state employees
- Effective January 1, 2027: the State of Rhode Island is deemed an employer under TDI and will participate in the program overseen by the Department of Labor and Training.
- All state employees must be covered and eligible for benefits on the same terms as other covered workers.
- The state must contribute both employer and employee payroll deductions to the TDI fund, consistent with existing rules for other employers.
- The Department of Labor and Training may promulgate rules necessary for implementation.
- Pre-existing collective bargaining agreements remain in effect; however, the act allows for potential negotiation of supplemental disability benefits.
- Administrative steps (including payroll system and reporting changes) required; coordinated action by the General Treasurer, Department of Administration, and the Department of Labor and Training.

3) Effective date and applicability (Section 3)
- The act takes effect January 1, 2027.
- Applies to wages earned on or after that date.

Impact and who is affected

  • State employees: Begin receiving TDI benefits under Rhode Island law starting in 2027, with eligibility and benefit design aligned to the existing TDI framework.
  • State payroll and administration: Must implement payroll deductions, reporting, and system modifications to accommodate TDI contributions and benefits for state workers.
  • Employers and the TDI fund: Extend coverage (and associated employer contributions) to the state as a participant, affecting fund management and revenue flows.

Policy implications

  • Expands social insurance coverage to all state employees, reducing potential gaps in protection during sickness-related unemployment.
  • Creates uniform treatment of sickness-related unemployment across private and public sectors within Rhode Island, subject to existing TDI rules.
  • Provides a pathway for potential supplemental disability benefits through collective bargaining, preserving negotiation rights.

Overall, SB 2927 reorganizes Rhode Island’s TDI landscape to include state employees beginning in 2027, with the same eligibility, benefit structures, and funding mechanisms that govern private-sector and non-state public-sector workers.

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

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