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H 7771Standards & Wages

Labor and Labor Relations - Minimum Wages

This bill increases the Rhode Island minimum wage to $24.00 per hour commencing on January 1, 2027.

Held for study
Population
Affected
35
Email Legislator
Introduced Feb 12, 2026Committee House Labor

Plain-English Summary

This legislation amends the Rhode Island General Laws regarding minimum wages. Currently, the law includes a scheduled increase to the minimum wage, setting it to reach $17.00 per hour by January 1, 2027. This bill alters that schedule. Under the new legislation, starting January 1, 2027, the minimum wage in Rhode Island will instead increase to $24.00 per hour. This represents a significant increase over the previously established rate for that year.

For younger readers

This new rule changes how much money people must be paid for their jobs in Rhode Island. Right now, there is a plan to make sure workers get paid a certain amount of money for every hour they work. This bill says that starting in the year 2027, the lowest amount a worker can be paid is twenty-four dollars for every hour. This is a bigger amount than the seventeen dollars that was originally planned for that year.

Who & Where It Applies

Impacted groups
Low-wage workersSmall business ownersLarge corporationsConsumersTeenagers entering the workforce
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Employers: $7.00/hr increase per minimum wage employee
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Significantly increases the earnings of low-wage workers, moving closer to a living wage that allows individuals to better afford housing, food, and healthcare without working multiple jobs.
  • Reduces income inequality by redistributing a larger share of corporate profits to the workforce, helping to address the widening wealth gap between the rich and the working poor.
  • Strengthens the social safety net by enabling more workers to support themselves financially, thereby reducing the stigma and necessity of relying on government assistance programs.
  • Could inadvertently harm small, locally-owned businesses that operate on thin margins, potentially leading to closures or the consolidation of the market by large corporations that can afford the wage hike.
  • Might accelerate the automation of entry-level jobs, potentially displacing vulnerable workers or those with fewer skills who rely on these positions for employment.
  • Does not include language tying the new wage specifically to inflation or cost-of-living indices after 2027, meaning the purchasing power of the wage could eventually erode again.
For Conservatives
  • Reduces the need for taxpayer-funded government assistance programs, as higher wages may disqualify some individuals from welfare eligibility, shifting the burden from the state to the employer.
  • Encourages individuals to enter the workforce rather than relying on unemployment or other benefits, potentially increasing overall labor force participation.
  • Increases income tax revenue for the state without technically raising tax rates, as workers move into higher earnings brackets and generate more taxable income.
  • Imposes a drastic and burdensome mandate on business owners, violating principles of free enterprise and corporate freedom to set wages based on market value and employee merit.
  • Likely to drive up the cost of goods and services for all consumers, contributing to runaway inflation and reducing the purchasing power of the dollar for families.
  • Will likely force businesses to close or relocate to states with lower labor costs, destroying jobs and permanently damaging the local economy.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 3 additions · 2 deletions

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 twenty-four dollars ($17.00) ($24.00) per hour.

SECTION 2. This act shall take effect upon passage.