Chamber Connections BLOG
Chamber Connections BLOG
Senate Labor Committee Passes Family Leave Bill
On a 4-2 vote, the Senate Labor Committee recommended passage of S.2467, An Act Relating to Labor Relations – Rhode Island Parental and Family Medical Leave Act. The bill increases the number of benefit weeks provided to employees from thirteen weeks every two years, to twenty-four weeks every two years. While the Chamber understands that this is unpaid leave, the employer must still keep the employee’s job waiting for the person’s return. The Chamber wishes to thank Senator Roger Picard and Minority Leader Jessica de la Cruz for voting against passage of the bill. Voting in favor was Chairman Frank Ciccone, Senator Frank Lombardi, Senator John Burke and Senator Melissa Murray. S.2467 is now headed to the Senate floor for a vote March 21st. This Week At the State House Tuesday March 12th Senate Commerce Committee Self-service check outs, data privacy and deceptive trade practices are all on the agenda for the Senate Commerce Committee hearing at the Rise in room 212. S.2268, An Act Relating to Commercial Law – Grocery Stores limits the number of customer self-checkout stations to six, requires grocery stores to maintain one manual check-out station for every self-checkout station in use, and gives the Attorney General’s office the authority to impose penalties for noncompliance. The self-service check-out limitation provision in S.2268 could bring under its umbrella grocery stores, pharmacies, and certain retail stores that offer a wide array of goods. Written testimony can be forwarded to slegislation@rilegislature.gov S.2500, An Act Relating to Commercial Law – Rhode Island Data Transparency and Privacy Protection Act establishes rules for Rhode Island companies that sell or provide information to third parties for marketing purposes. S.2500 is a seventeen-page bill that is different than bills introduced in previous years. The employee responsible for collecting data for a company must provide certain information in a customer agreement or on a website. The information must include: categories of personal data collected, categories of third parties to whom the information is disclosed, explanation concerning how customers may exercise rights provided under the law, the purposes for collecting the personal data, categories of personal data shared with third parties, and an active email address or online avenue to contact the person in charge of data collection. Customers have a right to correct inaccuracies in the customer’s personal data and to delete data. They have the right to obtain a copy of the data processed and to opt out of data collected for targeted advertising purposes. If your business sells or provides information to third parties, we encourage you to carefully read the bill and submit comments. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2500.pdf S.2503, An Act Relating to Commercial Law – General Regulatory Provisions – Deceptive Trade Practices attempts to address what is often referred to as “junk fees.” The legislation creates a new section to the unfair deceptive practices act, stating it is an unfair practice to offer goods or services to the public and to fail to include a notification disclosing any mandatory fees including the “nature and purpose” of those fees. S.2503 creates significant ambiguity by using language that does not distinguish between fees that are fixed and determinable upfront versus fees that vary based on consumer choices during the ordering process. For example, some web-based companies will charge fees based on the amount of items purchased, or a percentage of the cost of an item or service. These fees are eventually disclosed to the consumer, but cannot be calculated until the order is about to be completed. The language in the legislation would cause this practice to be declared illegal. Additionally, there is no language in the bill to clarify a length of time between the displaying of a price and the customer’s purchase triggering an unfair practice violation. It is possible for a business to advertise a price for an item, and then the corresponding fees change prior to the customer ultimately making a purchase. Lastly, The Federal Trade Commission (FTC) is working on this very issue now. The Chamber believes it is prudent to allow that process to move forward before the State promulgates proposed regulations covering the same subject matter. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2503.pdf S.2505, An Act Relating to Commercial Law – Deceptive Trade Practices, is another difficult bill to dissect for meaning. This one-sentence bill states, “Any term or condition in any agreement which unnecessarily burdens a person's effective vindication of rights under this chapter [the Deceptive Trade Practices Law] shall be null and void.” If passed, the bill will provide business to attorneys, as the courts attempt to determine what activities are covered under the new provision. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2505.pdf Senate Judiciary Committee The Senate Judiciary Committee is also meeting at the Rise on Tuesday to hear testimony on S.2672, An Act Relating to Criminal Procedure – Identification and Apprehension of Criminals. The bill prohibits the state or any agency, from denying any person employment based on a prior criminal conviction and prohibits the state from disqualifying any person from engaging in any occupation for which a license, permit or certificate of registration is required based on a prior conviction. Unless a particular state law or federal law requires an employer to ask about prior convictions, any state or private employer may not ask about criminal history “until such prospective employee has been deemed otherwise qualified for the position.” At that point, a state entity or agency can deny employment or licensure, registration or permit if the crime is related to the occupation and after taking into consideration the degree of rehabilitation and the time that has elapsed since the conviction. The bill does not specifically state that a private employer cannot deny employment; but it does say “If a conviction of a crime is used as a basis for rejection of an applicant, such rejection shall be in writing and specifically state the grounds presented and reasons for rejection. A copy of such rejection shall be sent by registered mail to the applicant.” One last provision of the bill states that once an individual completes a suspended sentence, a probationary sentence or deferred or suspended sentence, and that person is not subject to sexual offender registration, then the Department of Probation and Parole must issue to the person a certificate of rehabilitation which can be used when applying for employment. S.2203, An Act Relating to Labor and Labor Relations - Fair Employment Practices Act creates individual liability for any person, employer, or employees who directly or indirectly commit any act declared to be an unlawful employment practice. This bill seems to be aimed at overturning a 2017 Rhode Island Supreme Court decision - Mancini vs City of Providence. The case involved a Providence Police Sergeant who alleged he was illegally denied a promotion based on discriminatory factors; and he attempted to sue then Chief of Police, Hugh Clements, Jr. personally. The Rhode Island Supreme Court stated, “allowing for the possibility of individual liability would have a predictably chilling effect on the discretionary management decisions of supervisory employees.” The Chamber encourages members of human resource staffs to submit testimony for the Tuesday hearing at SLegislation@rilegislature.gov Wednesday, March 13th The Senate Labor Committee H.2121, An Act Relating to Labor and Labor Relations – Temporary Disability Insurance, increases the weekly dependance allowance provided under TDI/TCI to increase from $10 to $20 or 7% of the benefit rate, whichever is greater. The bill also expands the TCI benefit to cover employees who wish to take time to care for a sibling (including half-siblings and foster siblings), a grandchild or a “care recipient.” A “care recipient” is defined as “a person for whom the employee is responsible for providing or arranging health or safety related care, including, but not limited to, helping the person obtain diagnostic, preventive, routine, or therapeutic health treatment.” Lastly, the TCI benefit increases to 12 weeks in a benefit year beginning January 1, 2025. This benefit was first extended to employees in 2014 at 4 weeks. It increased to 5 weeks in 2022 and to 6 weeks in 2023. The employer is required to hold the job for the employee that is on leave. The Chamber strongly encourages you to contact your legislators on this bill, as well as the House version – H.7171. Both bills are being pushed heavily by the advocates and are under consideration. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2121.pdf S.2783, An Act Relating to Labor and Labor Relations – Employment Security – Benefits proposes to change who is entitled to unemployment benefits during a labor strike. Under current law, an employee is not entitled to unemployment benefits during a strike unless the individual is not a member of the striking union. If an employer locks out striking employees, those employees are entitled to benefits unless the employer is a member of a multi-employer collective bargaining group and the lockout is in response to a strike at another member’s location. S.2783 allows all striking workers to collect unemployment benefits during a strike, meaning an employer is ultimately paying its employees to refuse to work during contract negotiations. S.2783 upsets the delicate balance of power during negotiations which is designed to encourage both sides to work toward compromise. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2783.pdf S.2785, An Act Relating to Labor and Labor Relations – Labor Relations Act, proposes to protect the free speech rights of employees in the workplace, but it also limits the first amendment rights of employers. S.2785 would prohibit employers from requiring non-managerial employees to attend a meeting to learn about legislative proposals or regulatory matters as well as meetings to provide information concerning labor organization efforts. If enacted, this legislation would severely limit an employer’s ability to educate employees about legislation, including legislation that would materially impact the business’ operations or the employee’s day-to-day job responsibilities. The bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2785.pdf S.2473, An Act Relating to Labor and Labor Relations – Workplace Psychological Safety Act will be heard once again. The bill begins by stating that employees have a right to a physically safe work environment and to a psychologically safe workplace. Employers have a “general duty” to provide a work environment free from all forms of psychological abuse and to ensure that all employees are treated respectfully and with dignity. “Psychological abuse” is defined as “mentally provocative harassment. Mistreatment that has the effect of hurting, weakening, confusing, or frightening a person mentally or emotionally.” Within six months of enactment, all employers must adopt policy procedures to comply with the law and train managers and supervisors to handle complaints. S.2473 includes an annual reporting process. Employers are liable for failing to take appropriate measures to provide employees with a psychologically safe work environment. Penalties include economic, compensatory and punitive damages. Any person who aids, abets, incites, or coerces another person in an action not permitted under the legislation is also guilty. A person who experiences psychological abuse may present a case using direct and circumstantial evidence, and if successful may request public notification of the case outcome without disclosing the plaintiff’s name. The bill can be read in its entirety at: https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2473.pdf Testimony concerning bills on the Senate Labor agenda can be emailed to SLegislation@rilegislature.gov Thursday, March 14th House Environment & Natural Resources H.7617, An Act Relating to Health and Safety – Building Decarbonization Act of 2024, is an 18- page bill that addresses new residential and commercial buildings, renovations to certain properties and the collection of energy and water use data from commercial entities including housing properties. Beginning March 31, 2026, a single building with more than 25,000 sq. ft., condominium properties with more than 25,000 sq. ft., or two buildings served by the same electric or gas meter that together have more than 25,000 sq. ft. will be required to submit energy information to the Office of Energy Resources (OER) on an annual basis. The information will be used by OER to create benchmarks for meeting the Act on Climate requirements. As benchmarks are adopted, buildings will have to be renovated to meet the benchmarks. H.7617 bans municipalities from issuing permits for the new construction or the alteration of residential, commercial, or mixed-use buildings that are not “electric-ready” if the application or the permit was submitted after December 31, 2024. An exemption can be issued by the municipality if it is determined that the requirement is physically or technically infeasible. Financial considerations are not sufficient to allow for an exemption. No permits for new commercial, residential or mixed-use buildings would be issued after December 31, 2026, unless the building is all-electric. The bill can be viewed at https://webserver.rilegislature.gov/BillText/BillText24/HouseText24/H7617.pdf Testimony should be submitted to HouseEnvironmentandNaturalResources@rilegislature.gov The following new bills have been filed: House Bill No. 8055 (Secretary of State) Voas, Giraldo, Stewart, Solomon, Casimiro, Kazarian, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- RHODE ISLAND BUSINESS CORPORATION ACT (Allows the sharing of certain information between the division of taxation and the secretary of state's office regarding an entity's tax status as compliant or non-compliant.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H8055.pdf House Bill No. 8059 Baginski, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- RHODE ISLAND NONCOMPETITION AGREEMENT ACT (Prohibits noncompete agreements except for noncompete agreements between a seller and buyer of a business; creates civil action for an employer for the violation of an agreement by employee regarding disclosure or wrongful utilization of trade secrets.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H8059.pdf
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This Week At the State House
Tuesday March 12th House Committee on Health & Human Services H.7694, An Act Relating to State Affairs and Government – RI Individual Market Affordability Act of 2024 will be heard in room 135 at the Rise (approximately 4:30pm). H.7694 establishes a new program entitled “The Rhode Island Individual Market Affordability Program” and funds it through a 2% assessment on private insurance premiums starting in 2025. The funds can be used to reduce cost sharing for individuals (eligible for subsidies) enrolled in health insurance coverage through the RI Health Exchange; provide payments to carriers to increase affordability of insurance on the individual market for lower household income families; and pay for administrative costs related to the new program. A 2022 study by KFF revealed our state has the 6th highest average employer-paid health insurance premium costs in the United States. New York is highest in cost, followed by Washington DC, Alaska, Vermont, Connecticut and then Rhode Island. Massachusetts ranked 11th. https://www.kff.org/other/state-indicator/single-coverage/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Total%20Annual%20Premium%22,%22sort%22:%22desc%22%7D As premiums increase, it becomes more difficult for businesses to provide health insurance benefits to employees; it makes our state less competitive in attracting economic development to the state and pushes current employees into the individual marketplace. The Chamber, together with other business organizations, have been advocating for the creation of a health care mandated benefits review committee. The committee would be charged with evaluating, on a use and cost basis, all proposed new health care mandates and programs, and then providing that information to the General Assembly before the legislature votes to change the system. Other states have independent bodies, agencies, or designated entities to perform such studies. Certain states require proponents to submit a complete study (contents of the study are stated in statute) with the request to introduce legislation. So far in 2024, sixty-two bills have been introduced in the House and Senate to add new benefits to the health care system. It is an increasing trend that is detrimental to the state’s economy. Wednesday, March 13th Senate Labor Committee Three bills of interest will be heard in the Senate Labor Committee at 4:00 in room 212. S.2467, An Act Relating to Labor Relations – Rhode Island Parental and Family Medical Leave Act increases the number of benefit weeks provided to employees from thirteen weeks every two years, to twenty-four weeks every two years. While the Chamber understands that this is unpaid leave, the employer must still keep the employee’s job waiting for the person’s return. Employers are having an extremely difficult time attracting employees. Finding temporary workers can be even more challenging. Should S.2467 pass, employers will be looking for replacements for almost six months, at a time when they cannot find employees for a full year. This is a very high burden at a time when businesses are least able to adapt. Additionally, should the proponents of the expansion of the state’s Temporary Caregiver Insurance (TCI) program be successful, the expansion of Family Leave, together with the expansion of TCI would leave employers trying to find replacement employees for up to nine months. The Chamber strongly encourages you to contact your legislators about this proposal as well as the proposal to expand the TCI program (S.2121 and H.7171). Testimony on S.2467 can be emailed to SLegislation@rilegislature.gov The bill can be reviewed in its entirety at https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2467.pdf S.2123, An Act Relating to Labor and Labor Relations – Payment of Wages, changes an employer’s responsibilities as it relates to providing employees with statements of earnings. Today employers must include the hours worked, deductions from gross earnings and an explanation of those deductions. The legislation adds items such as the last four digits of the social security number, deduction explanations in the employee’s preferred language, the employer’s address and name, and output information if pay is based on quantity. It also requires employers to keep these records for an undisclosed period of time. Today, employers must keep records for three years. S.2123 eliminates that provision in its entirety, suggesting the employer must keep the records until it winds up its business activity. S.2123 also requires employers to provide a type of “mini employee handbook” to employees in each employee’s primary language. The information includes items such as: wage information, benefits, holiday information, sick time, and travel and expense policies. DataUSA reports that 22.4% of Rhode Island households report speaking a primary language other than English. While the most common non-English language spoken in Rhode Island is Spanish followed by Portuguese, there are reportedly forty-one languages spoken as a primary language in the State. Some families are fluent in both their primary language and English, others are not. This bill would require employers to be prepared to provide information in multiple languages, a very high burden for Rhode Island businesses. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2123.pdf Businesses in the warehouse industry are encouraged to submit testimony on S.2478, An Act Relating to Labor and Labor Relations – Warehouse Worker Protection Act. S.2478 requires employers in the warehousing industry to provide employees with a written description of quotas an employee is required to meet within a defined period and any penalties that could be levied as a result of failing to meet the quota. If the quota changes, employees must be notified within two business days of the change. Each time a penalty is levied, the employer must provide the employee with “an applicable quota.” It is unclear whether this last provision mentioned, refers to a written description of the failure to meet the quota established, or if an existing quota will have to be adjusted to meet the employee’s “under performance.” Section 28-60-4 of the bill states, “An employee shall not be required to meet a quota that prevents compliance with meal or rest periods or use of bathroom facilities, including reasonable travel time to and from bathroom facilities.” This language seems to imply that the employer must go to each station and attempt to determine how long a “reasonable person” would need to walk to the bathroom and back. As employees move around the warehouse, the employer would have to keep track of the constant location of the employee and re-calculate the time needed in order to avoid the penalties that are contained in S.2478 and to keep the necessary records outlined in S.2478. Under the bill, employers are required to keep records on the following items: (1) Each employee's own personal work speed data; (2) The aggregated work speed data for similar employees at the same establishment; and (3) The written descriptions of the quota such employee was provided. Lastly, S.2478 provides a private right of action by an employee for injunctive relief, costs and attorney’s fees. If the employer took any action that might be deemed to be retaliatory by the employee, the employer could be subject to penalties of $10,000 or three times the unpaid wages and benefits, whichever is greater. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2478.pdf Thursday, March 14th Senate Committee on Housing & Municipal Government Owners of certain multi-family residential properties should take note of S.2631, An Act Relating to property-Community Opportunity to Purchase Act. S.2631 will be heard in committee Thursday, at the Rise in room 212. This legislation creates a right of first offer for non-profit organizations wishing to purchase certain privately-owned real property with five or more residential rental units (whether or not the property also includes non-residential uses). Rhode Island Housing would be responsible for determining which nonprofit organizations qualify for this special treatment, and for posting a list of those entities on a website. Private owners of multi-family residential properties that were constructed twenty (20) years ago or more, would be required to notify eligible non-profits of the desire to sell the property prior to notifying the general public. The normal sales process could not begin until the initial notification is complete. Those non-profits are given at least sixty (60) days to submit offers to purchase. Every seller must submit a signed declaration of compliance with this proposed law within fifteen (15) days of the sale of the building. It is signed under penalty of perjury. Should the seller fail to file the declaration, the seller is subject to a fine of up to $5,000. https://webserver.rilegislature.gov/BillText/BillText24/SenateText24/S2631.pdf Testimony should be emailed to SLegislation@rilegislature.gov The following new bills have been filed: Senate Bill No. 2711 Bissaillon, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- DECEPTIVE TRADE PRACTICES (Prohibits credit reporting, executions, attachments against a principal residence for judgments based on medical debt. Defines medical debt as an amount for the receipt of health care services, products, or devices.) http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S2711.pdf Senate Bill No. 2738 Kallman, Gu, DiMario, Miller, Valverde, LaMountain, Acosta, McKenney, Burke, AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- TERMINATION OF SERVICE TO PERSONS WHO ARE DISABLED, SERIOUSLY ILL, OR IN ARREARS OF PAYMENT (Extends the forbearance of utility terminations for customers with serious illness certifications and would amend various provisions related to the termination of utility services for persons who are disabled, seriously ill, or in arrears.) http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S2738.pdf Senate Bill No. 2772 (Secretary of State) Quezada, Mack, Zurier, Lauria, Tikoian, Ujifusa, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- UNIFORM PARTNERSHIP ACT (Requires certain limited liability partnership providing professional services to carry liability insurance.) http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S2772.pdf Senate Bill No. 2783 Bissaillon, Burke, Mack, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY -- BENEFITS (Allows unemployment benefits for workers who are on strike or are locked out of their workplaces by their employer due to a labor dispute.) http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S2783.pdf Senate Bill No. 2785 LaMountain, Bissaillon, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- LABOR RELATIONS ACT -- EMPLOYEE FREE SPEECH RIGHTS (Protects employees free speech regarding political or religious matters.) http://webserver.rilin.state.ri.us/BillText/BillText24/SenateText24/S2785.pdf House Bill No. 7927 Solomon, AN ACT RELATING TO TAXATION -- TAXATION OF BANKS (Provides banks with an election to use the allocation and apportionment method of income for purposes of taxation.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H7927.pdf House Bill No. 7928 Casey, Finkelman, Solomon, Phillips, Fenton-Fung, J. Brien, Chippendale, Dawson, Costantino, AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX (Repeals the corporation minimum tax.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H7928.pdf House Bill No. 7929 Casey, Finkelman, Solomon, Phillips, J. Brien, Chippendale, Dawson, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX (Authorizes a retroactive tax credit for tax yr 2022/thereafter/allowing investment tax credits to be passed through to the personal income tax returns of eligible Sub-S corporation shareholders/limited liability company members who meet certain conditions) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H7929.pdf House Bill No. 7940 Voas, Alzate, Potter, Kazarian, Hull, Marszalkowski, DeSimone, Finkelman, Caldwell, Slater, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- SENIOR SAVINGS PROTECTION ACT (Prohibits the charging of any fees to a senior citizen who is 65 years of age or older for a hard-copy paper bill, invoice or statement. The violation of this provision would be a deceptive trade practice subject to a ($500) fine.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H7940.pdf House Bill No. 7942 Craven, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- DECEPTIVE TRADE PRACTICES (Makes any term or condition in any agreement that unnecessarily burdens a person's vindication of rights under this section null and void.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H7942.pdf House Bill No. 7981 Giraldo, Speakman, Biah, Henries, Voas, Kislak, Batista, Diaz, Alzate, Kazarian, AN ACT RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES (Amends the provisions relative to permitted uses within residential, industrial and commercial zoning use districts.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H7981.pdf House Bill No. 8044 Hull, J. Lombardi, Fogarty, Handy, Shallcross Smith, Ajello, Ackerman, Slater, Azzinaro, Bennett, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKPLACE PSYCHOLOGICAL SAFETY ACT (Protects bullying/psychological abuse in workplace inflicted upon employees by employers/co-employees/provides civil remedies to affected employees/fines against employers/imprisonment/fines against co-employees.) http://webserver.rilin.state.ri.us/BillText/BillText24/HouseText24/H8044.pdf NEWS RELEASE Disaster Field Operations Center East
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