e-Alert: Rhode Island Increases Minimum Wage to $15 by 2025

Background

Rhode Island has made amendments to its minimum wage law to gradually increase the minimum wage rate to $15 per hour by January 1, 2025.

Summary

Under the law, employers are required to pay their employees a rate at least equal to the state’s minimum wage rate.

Tipped Employees

Rhode Island allows employers to pay a lower minimum wage rate to tipped employees. This rate is known as a “cash wage,” as it assumes that the employee’s tips will be sufficient to offset the difference between the cash wage and the state’s minimum wage rate. The Rhode Island cash wage for tipped employees is $3.89 per hour. However, employers must subsidize their tipped employees’ wages if the employees’ tips are not enough to enable them to earn a wage that is at least equal to the state’s minimum wage rate.

Employers Next Steps

• Employers should review and adjust their employee payroll practices to account for these upcoming minimum wage increases.
• If you have further questions regarding this e-Alert, please email us.

The People Simplifying HR

For almost twenty years, HR Knowledge has made it our mission to demystify the complex and daunting process of HR management. We do more than just provide the level of service and technology you’d expect from an industry leader. We combine an unparalleled passion for service with our decades of HR, payroll, and benefits experience to provide our clients with personalized and actionable advice that is second–to–none. From managed payroll to employee benefits to HR support, we can help your organization thrive, grow, and reduce operating costs—no matter what industry you serve. Whether you’re interested in our Full-Service solution or just need your employee handbook written, HR Knowledge can help you minimize risk while staying on top of compliance regulations. The bottom line? We’re not just another cloud-based technology company that also does HR, #WeAreHR. Get the scoop on how we can help you simplify HR.

This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.