Committee hears testimony to make Rhode Island partial-unemployment earnings rule permanent

Senators reviewed testimony supporting a bill to remove the June 30, 2025 sunset on an expanded partial-unemployment earnings disregard that lets some claimants keep more money while working part time.

The bill matters because it would make permanent a change adopted during the COVID-19 pandemic that increases the amount partial unemployment claimants may earn before being disqualified and raises the disregard. Matt Walden, a Department of Labor and Training official, told the committee the policy has shortened benefit duration for partial claimants and boosted reported earnings overall.

Walden said the policy was developed with the governor and House counterparts early in the pandemic to address federally enhanced unemployment and concerns that benefit rules could deter returning to part-time work. “It allows people to earn 1 and a half times their benefit rate and also allows them to keep more of their money before they're penalized,” Walden said. He said the latest complete data through 2023 show the average partial claimant collected about 5.8 weeks of benefits versus 14.6 weeks for a full claimant, and that partial claimants reported about $5.2 million more in earnings than they would have without the change.

Committee Chair moved to hold the bill to allow preparation of a sub A to the bill; Senator Patrick P. Paolino moved to hold and Senator D. de la Cruz seconded. With no discussion, the committee voice-voted in favor and the motion passed.

The bill remains in committee for drafting of the sub-amendment and further review. The department said it will provide updated 2024 data when available.