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H 7769Standards & Wages

Labor and Labor Relations - Minimum Wages

This bill increases the Rhode Island minimum wage to $20.00 per hour effective January 1, 2027.

Held for study
Population
Affected
25
Email Legislator
Introduced Feb 12, 2026Committee House Labor

Plain-English Summary

This legislation amends the existing schedule for minimum wage increases in Rhode Island. Currently, state law requires the minimum wage to reach $17.00 per hour by January 1, 2027. This bill modifies that specific provision, mandating that the minimum wage instead be raised to $20.00 per hour starting on January 1, 2027. The bill maintains the previously established annual increases leading up to that date but significantly raises the final target wage for 2027.

For younger readers

Imagine you have a job, like walking dogs or cleaning yards. The government has a rule about the lowest amount of money a boss is allowed to pay you for an hour of work. Right now, the rule says that in the year 2027, bosses must pay at least 17 dollars an hour. This new law changes that rule. Instead of 17 dollars, bosses will have to pay at least 20 dollars for every hour of work starting in the year 2027.

Who & Where It Applies

Impacted groups
Minimum wage workersSmall business ownersCorporate employersConsumersState and municipal governments (as employers)
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Significantly increases the earnings of low-wage workers, helping to close the income inequality gap and allowing working families to better afford basic necessities like housing and food.
  • Moves the state closer to a true living wage that reflects the actual cost of living in Rhode Island, ensuring that individuals working full-time do not have to live in poverty.
  • Stimulates the local economy by putting more money directly into the hands of workers who are most likely to spend it immediately on goods and services within their communities.
  • The significant wage increase does not take effect until 2027, meaning workers currently struggling with inflation and the high cost of living must wait several years for this specific relief.
  • Could potentially push some workers over income thresholds for social safety net programs (the "benefit cliff"), resulting in a net loss of total resources for vulnerable families if eligibility requirements are not adjusted.
  • Lacks specific subsidies or protections for very small, minority-owned businesses that may struggle to absorb the increased labor costs compared to large, wealthy corporations.
For Conservatives
  • Potentially reduces the burden on state-funded social assistance programs, as higher wages may allow some individuals to disqualify themselves from government welfare rolls.
  • Increases the state's income tax revenue base by raising the taxable earnings of the lowest-paid workers without officially raising tax rates.
  • Encourages businesses to innovate and adopt more efficient technologies or automation to maximize productivity per employee in response to higher labor costs.
  • Imposes a significant financial mandate on private businesses, interfering with the free market and potentially forcing small business owners to close or reduce their workforce to survive.
  • Likely to drive up the cost of goods and services for all consumers as businesses pass on the increased labor expenses to the public, exacerbating inflation.
  • Violates the principle of freedom of contract by preventing employers and employees from negotiating mutually agreeable wages based on skill level and market conditions.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 3 additions · 1 deletion

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.

(c) Commencing March 1, 2006, the minimum wage is seven dollars and ten cents ($7.10) 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) twenty dollars ($20.00) per hour.

SECTION 2. This act shall take effect upon passage.