H 7770Standards & Wages

Labor and Labor Relations - Minimum Wages

This bill raises the minimum wage to $17.00 by 2027 and ties future increases to inflation starting in 2029.

Held for study

Population
Affected

Introduced Feb 12, 2026Committee House Labor

Plain-English Summary

This legislation amends Rhode Island's minimum wage laws to establish a schedule for future wage increases. Specifically, it raises the minimum wage to $16.00 per hour starting January 1, 2026, and to $17.00 per hour starting January 1, 2027. Additionally, beginning January 1, 2029, the bill mandates that the minimum wage be adjusted annually based on the Consumer Price Index (CPI-U) for the Northeast Region. This ensures wages keep pace with inflation, with a provision that the wage rate cannot decrease even if the CPI drops.

For younger readers

This rule is about the money people earn for doing their jobs. Right now, there is a limit on the lowest amount of money a boss is allowed to pay a worker. This rule says that amount must go up to $16.00 and then $17.00 over the next few years. After that, the amount will keep going up if the cost of buying things like food and clothes goes up. This makes sure workers can still afford what they need even if prices get higher.

Who & Where It Applies

Impacted groups

Low-wage employeesSmall business ownersCorporate employersConsumersState government (as employer)

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Directly benefits low-income workers by raising the wage floor to $17.00 per hour, helping to reduce poverty and income inequality within the community.
Implements an automatic adjustment based on the Consumer Price Index (CPI), ensuring that workers' purchasing power is not eroded by inflation in the future without needing constant legislative battles.
Protects workers with a "ratchet" clause that prevents the minimum wage from decreasing, even if the cost of living index drops, ensuring financial stability for vulnerable populations.
The implementation of the inflation-based adjustment is delayed until 2029, potentially leaving workers' wages stagnant relative to the cost of living for a period after the 2027 increase.
A $17.00 hourly wage by 2027 may still fall short of a true living wage required to afford housing and basic necessities in Rhode Island, leaving some systemic economic issues unresolved.
Does not appear to address or eliminate the sub-minimum wage for tipped employees, leaving a specific group of vulnerable workers without the same guaranteed base income protections.

For Conservatives

Provides a defined, multi-year schedule for wage increases, allowing businesses to forecast labor costs and adjust their budgets and pricing strategies well in advance.
By increasing the earnings of low-wage workers, this measure could potentially reduce reliance on state-funded welfare programs, shifting the burden from taxpayers to employers.
Tying future increases to the Consumer Price Index relies on an economic metric rather than arbitrary political decisions, theoretically aligning wage growth with actual market conditions.
Imposes a government mandate on private businesses that restricts corporate freedom and may force small business owners to reduce staff or hours to remain profitable.
Artificially increasing labor costs could contribute to wage-push inflation, resulting in higher prices for goods and services for all consumers.
The provision preventing wage decreases during deflationary periods restricts the ability of the labor market to naturally correct itself during economic downturns.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 6 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, 2029, 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 calendar year 2027, but in no event shall the minimum wage decrease to reflect any decrease in the CPI-U.

SECTION 2. This act shall take effect upon passage.