What happened?

On June 17, 2024, Rhode Island HB 8262 was signed into law by Governor Daniel McKee. This law modifies four sections pertaining to workers’ compensation benefits, with a specific focus on raising the dependent benefits for employees with disabilities.

What are the details?

Key Bites for Employers:

• Section 28-33-17:
  This section details the weekly compensation for total incapacity, permanent total disability, and dependents’ allowances.
  
  • Effective January 1, 2025, the sum to be added for weekly compensation to be payable for each person wholly dependent on the employee to $25.00.
  • For those receiving, it will increase to $40.00.
  • Courts are not limited to ordering a payment within the range of $9.00 to $15.00: the range was eliminated.
    
• Section 28-33-18.2:
  This section discusses suitable alternative employment for an injured employee and the compensation they would receive if they accepted such employment.
  
  • Effective January 1, 2025, if an injured employee accepts alternative employment, the employer or insurer should provide weekly compensation. This compensation is calculated as 62% of the difference between the employee’s average weekly earnings before the injury and their earnings from the new job.

• Section 28-35-58:
  This section discusses the liability of a third person for damages in cases where the injury was caused under circumstances creating a legal liability in some person other than the employer.
  
  • The amendment adds that, if there is a disagreement about the owed reimbursement or suspension period, the court can assign the dispute to the workers’ compensation court’s mediation program, as per the court’s rules. This does not prevent any party from pursuing other available actions. This is effective immediately.
    
• Section 28-37-10:
  This section discusses the dependents’ allowances to totally incapacitated persons when an injured employee suffering total incapacity ceases to receive payment under the Rhode Island temporary disability insurance act.
  
  • Effective immediately, compensation is increased to $25.00 per week as a minimum and capped at an increased range of $75.00 per week.

Business Considerations

• Employers should be prepared to increase payments for workers’ compensations on several fronts per the amendment.
• Employers should, in case of an injured employee accepting alternative employment, provide weekly compensation and it should be calculated as 62% of the difference between the employee’s average weekly earnings before the injury and their earnings from the new job.
• Employers should, in case of a disagreement about the owed reimbursement or suspension period, consider assigning the dispute to the workers’ compensation court’s mediation program, as per the court’s rules. This may help optimize and reduce litigation.

Source References

• RI HB 8262

Resources

• RI Supreme Court Appellate Mediation Program
• RI WORKERS’COMPENSATION COURT MEDIATION PROGRAM

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