H 7441Standards & Wages

Labor and Labor Relations - Minimum Wages

This bill raises the minimum wage to $17.00 by 2027 and ties future increases to regional inflation rates.

Introduced

Population
Affected

Introduced Jan 30, 2026Committee House Labor

Plain-English Summary

This legislation amends Rhode Island's minimum wage laws to schedule future increases. It mandates that the hourly minimum wage rise to $16.00 starting January 1, 2026, and to $17.00 starting January 1, 2027. Additionally, beginning January 1, 2028, the bill introduces an automatic adjustment mechanism. Future increases will be tied to the Consumer Price Index for all Urban Consumers (CPI-U) in the Northeast Region, calculated based on the previous four fiscal years. These inflation-based adjustments are capped at a maximum total increase of twelve percent.

For younger readers

This bill changes the rules about how much money workers must be paid. Right now, there is a lowest amount, called a minimum wage, that bosses have to pay their workers for every hour they work. This bill says that this amount will go up to $16.00 in the year 2026 and $17.00 in the year 2027. After that, starting in 2028, the amount will keep going up a little bit based on how much things like food and clothes cost, so workers can still afford to buy what they need.

Who & Where It Applies

Impacted groups

Low-wage workersSmall business ownersCorporate employersTeenagersService industry workers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Directly combats poverty by raising the wage floor to $17.00, ensuring that the lowest-paid workers in the state receive a greater share of economic prosperity.
Establishes an automatic Cost-of-Living Adjustment (COLA) tied to the Consumer Price Index, which protects workers' purchasing power from being eroded by inflation in the future.
Reduces systemic economic inequality by mandating that corporations invest more revenue into labor costs rather than retaining it as profit, helping to strengthen the social safety net.
The timeline for reaching $17.00 is delayed until 2027, which many advocates may argue is too slow to address the immediate financial crises facing low-income families today.
Includes a cap on inflation adjustments (12% over four years), which could result in wages lagging behind actual living costs if the economy experiences a period of hyperinflation.
Fails to address the sub-minimum wage for tipped workers, leaving a vulnerable segment of the service industry workforce reliant on tips to make a living wage.

For Conservatives

Provides a clear, multi-year schedule for wage increases, allowing business owners the ability to forecast labor costs and budget accordingly without sudden surprises.
Implements a cap on future inflation-based increases (12%), ensuring that businesses are not hit with unmanageable wage spikes during times of extreme economic volatility.
Uses a four-year average for CPI calculations rather than a single-year snapshot, which smooths out data and prevents reactionary mandates based on short-term market anomalies.
Represents government overreach into private contracts, stripping business owners of the freedom to negotiate wages based on merit, productivity, and market conditions.
Increases the cost of doing business, which may force small business owners to reduce staff, cut hours, or close entirely, ultimately hurting the economy.
Creates an "autopilot" system for wage hikes that removes the legislature's ability to debate or pause increases during future economic downturns when businesses are struggling most.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 5 additions

SECTION 1. Section 28-12-3 of the General Laws in Chapter 28-12 entitled "Minimum Wages" is hereby amended to read as follows: 28-12-3. Minimum wages.

(a) Every employer shall pay to each of the employer’s employees: commencing July 1, 1999, at least the minimum wage of five dollars and sixty-five cents ($5.65) per hour. Commencing September 1, 2000, the minimum wage is six dollars and fifteen cents ($6.15) per hour.

(b) Commencing January 1, 2004, the minimum wage is six dollars and seventy-five cents ($6.75) per hour.

(d) Commencing January 1, 2007, the minimum wage is seven dollars and forty cents ($7.40) per hour.

(e) Commencing January 1, 2013, the minimum wage is seven dollars and seventy-five cents ($7.75) per hour.

(f) Commencing January 1, 2014, the minimum wage is eight dollars ($8.00) per hour.

(g) Commencing January 1, 2015, the minimum wage is nine dollars ($9.00) per hour.

(h) Commencing January 1, 2016, the minimum wage is nine dollars and sixty cents ($9.60) per hour.

(i) Commencing January 1, 2018, the minimum wage is ten dollars and ten cents ($10.10) per hour.

(j) Commencing January 1, 2019, the minimum wage is ten dollars and fifty cents ($10.50) per hour.

(k) Commencing October 1, 2020, the minimum wage is eleven dollars and fifty cents ($11.50) per hour.

(l) Commencing January 1, 2022, the minimum wage is twelve dollars and twenty-five cents ($12.25) per hour.

(m) Commencing January 1, 2023, the minimum wage is thirteen dollars ($13.00) per hour.

(n) Commencing January 1, 2024, the minimum wage is fourteen dollars ($14.00) per hour.

(o) Commencing January 1, 2025, the minimum wage is fifteen dollars ($15.00) per hour.

(p) Commencing January 1, 2026, the minimum wage is sixteen dollars ($16.00) per hour.

(q) Commencing January 1, 2027, the minimum wage is seventeen dollars ($17.00) per hour.

(r) Commencing January 1, 2028, the minimum wage shall be increased by an amount equal to the total percentage increase in the Consumer Price Index for all Urban Consumers (CPI- U) published by the United States Department of Labor Bureau of Labor Statistics for the Northeast Region for the four (4) previous fiscal years, but in no event to exceed twelve percent (12%).

SECTION 2. This act shall take effect upon passage.