Labor & Employment (Workers' Compensation)

SB 3297 amends the state workers' compensation law to clarify definitions and expand the authority of the workers' compensation court. The bill updates how "earnings capacity" is calculated for injured workers, specifying that courts can consider an employee's ability to work based on their functional impairment without requiring the employer to identify specific job offers. It also clarifies who qualifies as an "employee" and "employer," including state agencies and contractors, while explicitly excluding independent contractors, sole proprietors, and corporate officers. Additionally, the legislation grants the court broader powers to enforce its orders and manage disputes regarding liability, disability status, and medical causation for cases filed after July 1, 2025.

This bill updates the definitions used in Rhode Island's workers' compensation system, specifically clarifying who counts as an "employee" and "employer" for legal purposes. It expands the workers' compensation court's authority to manage cases for state employees and airport workers starting in July 2025, allowing the court to decide on issues like disability status and suitable job offers. The legislation also refines how "earnings capacity" is calculated, establishing rules for when an injured worker is presumed to have regained their ability to earn money, such as after successfully working light duty for at least 13 weeks. Additionally, it clarifies that corporate officers who were previously employees generally remain covered under the act unless specific waiver procedures are followed.

SB 2739 amends the process for reimbursing workers' compensation costs when a third party (such as another company or individual) is liable for an injury. It changes how employers and insurers handle reimbursements after a third party pays damages to an injured worker. This directly affects injured workers, employers, and insurance providers in cases involving third-party liability. The bill clarifies procedural steps under existing workers' compensation law without altering benefit amounts or eligibility.

HB 7773 modifies how workers' compensation reimbursement works when an injured employee recovers damages from a third party (like another company or individual responsible for the injury). It requires employees to reimburse employers or insurers for workers' comp payments received, but excludes reimbursement for pain and suffering, loss of consortium, or other non-compensable damages. If third-party recovery exceeds compensation paid, benefits may be suspended for a period calculated by dividing the excess by the employee’s weekly rate, though medical benefits continue. The bill also sets a 2-year and 8-month deadline for employees to sue third parties, after which employers can pursue claims and seek reimbursement.

Expands the benefit definitions to include a grandchild and care recipient and increases benefits period to 10 weeks for 2027 and 12 weeks for 2028 and provides a TDI/TCI opt-in option for self-employed workers.