New Unemployment Benefit Bill Nears RI Governor's Desk

PROVIDENCE, RI — Changes are on the way to Rhode Island's unemployment benefits.

On Tuesday, the Rhode Island senate approved new legislation to change the way benefits are structured in the state, paving the way for new changes set to take effect Sunday, if the bill is signed into law.

The legislation allows Rhode Islanders to keep collecting unemployment benefits, as well as the federal pandemic relief bonus, while incentivizing people to return to the workforce.

Gov. Dan McKee worked closely with lawmakers to fast-track the bill through the General Assembly, amid outcry from business owners who said they were unable to fill vacancies ahead of the busy summer tourist season. The House bill was approved by the full Senate on Tuesday, and the Senate version is set for a vote in the full House on Thursday.

"Many businesses, especially in the service industries like hospitality, are now having trouble finding workers, even though our unemployment rate is still higher than usual," said Sen. Maryellen Goodwin, the Senate sponsor. "It’s a nationwide issue, but in places like Rhode Island where the hospitality and restaurant industries are a significant portion of our economy, it’s particularly concerning. We need those industries to be ready for a resurgence as people are vaccinated and go back to traveling this summer."

Goodwin went on to say that the federal funds help stimulate the state's economy and recovery, "but we also should ensure that it’s more rewarding to work than stay on unemployment."

Rep. Carol Hagan McEntee said the legislation is a signal "to all of our struggling small businesses and workers that help is on the way."

"[The bill] will protect and support our small businesses while also allowing our workers to get back to their jobs without fear of losing the crucial benefits that have kept themselves and their families afloat during the pandemic," she said. "Rhode Island will become a national leader with a funded solution to a country-wide problem that so many are trying to solve, but more importantly, this bill will allow our small businesses and their workers to financially recover from the devastating year we have all experienced thanks to the pandemic."

Under the law, anyone receiving unemployment benefits would be able to collect up to 150 percent of their benefit amount, not including the federal weekly bonus, before having the benefits cut off. Under the current rules, benefits cut off when wages reach 100 percent of the benefit amount, thereby losing the additional $300 per week from the federal government, as well. The $300 boost will remain in place as long as the person remains eligible to collect benefits.

The bill also raises the earnings ceiling that begins a reduction in benefits. Under the new law, Rhode Islanders could earn up to half of their benefit amount before weekly payments would be reduced, up from the current threshold of 20 percent.