Rhode Island Introduces Workers’ Comp Discrimination Bill

The Rhode Island House of Representatives introduced legislation, HB 7173, that would amend the state’s current workers’ compensation law to “prevent employers from discriminating against an employee because the employee has exercised a right afforded by the workers’ compensation statute.” The act would also define the improper disclosure of employee’s data as an unwarranted invasion of personal privacy.

The Bill Explained

“[I]f an employee provides a written demand for reinstatement…their former position must be reinstated, even if it was filled by a replacement,” explains CLM member Angela Cabado, director, Risk Management, Marriott Vacations Worldwide. “If, for some reason, their former position no longer exists, they must be reinstated in any other existing position that is vacant and suitable. So long as a medical determination exists that the employee can return to their regular employment, [this] would apply.”

Essentially, Cabado continues, Rhode Island is setting parameters for employers to decide if a position previously occupied by an employee who is out on workers’ comp must be held open for them. “While other jurisdictions do not specify to this level (yet), two best practices areas can be identified and should be kept in mind regardless of jurisdiction, and these are Documentation and Transitional Duty,” says Cabado. “…By ensuring you have forms that address all the requirements listed in this bill and having it mailed to the employee, the clock can start for an employee to then respond with their ‘demand for reinstatement….’”

Furthermore, “Having a transitional duty program in place will also assist, as an employee refusing an offer of light duty or alternative employment prior to reaching [maximum medical improvement] is grounds for their right to reinstate to no longer apply. This will then aid the decision to have the position eliminated or filled by a replacement—although I do highly recommend that this information be fully disclosed on your transitional duty offer letter to the employee, so they understand the ramifications of declining the offer,” Cabado emphasizes.

Potential Impact

“Rhode Island's recent legislative update may significantly strengthen the protections for employees on workers’ compensation,” Cabado concludes. “The bill outlines meticulous parameters for employers to navigate when considering the reinstatement of a position previously held by an associate on work comp leave.

“While such detailed legislation may be unique to Rhode Island for now, it prompts a broader reflection on best practices applicable across jurisdictions. Emphasizing clear and documented communication, particularly through mailed written notices, and implementing a robust transitional duty program, can serve as crucial safeguards for both employers and employees. As the landscape of workers’ compensation evolves, these two practices stand out as essential pillars in fostering fair and informed decisions.”

Employers found in violation of the law may be responsible for back pay, the cost of fringe benefits lost during the period as appropriate, and the employee’s legal counsel if sought and retained. The bill was referred to the House Labor Committee.