Bill > S00172

This bill amends the workers' compensation and insurance laws to increase short-term disability benefits for employees. Key provisions include establishing a phased increase in weekly disability benefits, starting in January 2028, with the goal of reaching 67% of an employee's average weekly wage, capped at 67% of the state average weekly wage, for the first twelve weeks of disability. For periods after the twelfth week and up to the twenty-sixth week of disability, benefits will be set at 30% of the employee's average weekly wage, capped at 30% of the state average weekly wage, though the Chair of the Workers' Compensation Board, in consultation with the Superintendent of Financial Services, has discretion to increase this later benefit level. The bill also adjusts the maximum employee contribution for disability benefits, increasing it to $2.20 per week starting in January 2028 and later tying it to a percentage of combined employee and employer contributions. Additionally, it clarifies that disability leave, like family leave, cannot be used to reduce an employee's regular remuneration and ensures that employees are entitled to be restored to their previous or a comparable position after taking disability leave, with their health benefits maintained during the leave. The bill also makes technical changes to the definition of a "day of disability" and the administration of the special fund for disability benefits, and it clarifies that penalties for violating workers' compensation law can be imposed per violation. These changes are generally effective immediately but apply to policies issued, renewed, modified, altered, or amended on or after January 1, 2028.