Governor Chafee signs bill expanding TDI benefits

PROVIDENCE — Governor Chafee on Thursday signed into law a bill providing up to four weeks of temporary disability insurance payments — otherwise known as TDI — to those out of work caring for a newborn, newly adopted child or sick relative.

The new paid leave law takes effect Jan. 1, 2014, and brings with it an anticipated increase in the amount workers statewide will have deducted from their paychecks to support the $15-million cost of expanding the program.

But a coalition of unions and advocacy groups — including the AARP, the Alzheimer’s Association-RI and SEIU District 1199 — lauded Chafee for signing “the groundbreaking Temporary Caregiver Insurance law … [and] making Rhode Island the third state in the nation to adopt a family leave insurance policy.” California and New Jersey have similar paid leave programs.

“Temporary Caregiver Insurance will enable working people to care for their children, their parents, their loved ones, without fear of falling behind on their bills or losing their jobs. It is a win-win-win for workers, employers and the Rhode Island economy,” said Marcia Coné, CEO of the Women’s Fund for Rhode Island.

Rhode Island is one of just five states in the nation that has a TDI program. The others are California, Hawaii, New Jersey and New York.

Workers here are required to pay 1.2 percent of their first $61,400 in earnings into the fund that pays for TDI, which now covers only those who suffer a non-work-related illness or injury.

TDI provides weekly benefits equal to about “60 percent of regular weekly wage — but only up to the maximum $752,” according to Department of Labor and Training spokeswoman Laura Hart.

Hart said there will be no impact in 2014 on the TDI tax rate paid by employees, but it will likely go up in fiscal 2015, — which begins on July 1, 2014 — to cover the estimated $15-million, 12-month cost of the new TDI caregiver program.

“Once the program is fully operational, the rate will need to be raised by two-tenths of a percentage point to cover costs,” she said.

The new law, championed by Sen. Gayle Goldin, D-Providence, and Rep. Elaine Coderre, D-Pawtucket, enables workers to take up to four weeks of paid leave to care for an ailing family member or “bond with a new child.”

The definition of family member includes “a seriously ill child, spouse, domestic partner, parent, parent-in-law [and] grandparent.”

And it includes “persons who stand in loco parentis,” in the sense that they have “day-to-day responsibilities” for the care and financial support of a foster child, for example, or had such responsibility for “the employee when the employee was a child.” A biological or legal relationship is not required.

A “serious health condition” means “any illness, injury, impairment, or physical or mental condition that involves inpatient care in a hospital, hospice, residential health care facility, or continued treatment or continuing supervision by a licensed health care provider.”

The employee would be required to provide certification from a treating doctor of the “serious health condition of the employee’s family member.”

The legislation sparked controversy as it moved through the legislature.

Supporters argued that it would help companies retain the investment they’ve made in workers who would otherwise have to leave their jobs to care for a family member. But opponents noted the Chamber of Commerce and other business groups opposed the bill. They also warned of the potential for abuse.

“As it’s written, 50 people could take off work to care for a sick grandfather,” said House Minority Whip Joseph Trillo, R-Warwick, as the bill moved through the House. “It’s wide open for abuse.”

But Rep. Edith Ajello, D-Providence, replied: “Wouldn’t that be wonderful? That would be 40 weeks. Each member of that family could actually take care of that senior citizen in perhaps their last years.”

Asked what convinced Chafee to sign the bill, his spokeswoman Christine Hunsinger said: “In this world where people now care for children and elderly families at the same time, he believes this is a … good thing for families.”

The bill was among the first signed by Chafee, as he waded through the hundreds of bills that state lawmakers passed in the final days of the six-month legislative session that ended on July 3.

By 4:46 p.m. Thursday, the Senate had transmitted 178 bills to the governor to be signed, vetoed or allowed to become law without his signature, and the House, 156. Another 103 had not yet been sent over.

“The plan is to transmit all bills to the governor by the end of this week. They are sent in batches in order to give the governor’s staff the appropriate time to review them, rather than sending them all at once,” House spokesman Larry Berman explained.