H 7958Standards & Wages

Labor and Labor Relations - Fair Employment Practices

Requires contractors building or renovating healthcare facilities to pay workers state-mandated prevailing wages.

Held for study

Population
Affected

Introduced Feb 27, 2026Committee House Labor

Plain-English Summary

This legislation mandates that any contract for capital improvements—such as construction, renovation, or demolition—performed on a healthcare facility must comply with state laws regarding labor and the payment of debts. Specifically, it requires contractors and subcontractors working on these facilities to pay their employees according to the standards set in Chapter 13 of Title 37. Practically, this extends "prevailing wage" requirements, which typically apply to public works projects, to construction projects involving healthcare facilities in Rhode Island.

For younger readers

This new rule helps workers who build or fix hospitals and other places where people go to get medical care. It says that the companies hiring these workers must pay them a specific amount of money, often called a "prevailing wage." This is a fair wage set by the government to make sure workers are paid well for their hard work. It ensures that when a hospital gets a new roof or a new room, the construction workers doing the job are treated fairly.

Who & Where It Applies

Impacted groups

Healthcare facilitiesConstruction contractorsSubcontractorsConstruction workersHospital administrators

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Ensures that construction workers and tradespeople working on healthcare infrastructure receive a living wage and fair benefits, preventing exploitation by low-cost bidders.
Strengthens the labor movement and supports union standards by preventing non-union contractors from undercutting wages to win contracts at healthcare facilities.
Promotes economic equity within the community by ensuring that public and semi-public healthcare spending translates into high-quality jobs for local residents.
May significantly increase the cost of construction and renovation for community health centers and non-profit clinics, potentially diverting limited funds away from patient care.
Could create barriers to entry for smaller, minority-owned contracting businesses that may lack the administrative capacity to manage the complex reporting required by prevailing wage laws.
Higher capital costs might result in increased medical costs for patients, disproportionately affecting low-income individuals without robust insurance coverage.

For Conservatives

Ensures that critical healthcare infrastructure is built by skilled professionals, potentially reducing long-term maintenance costs and safety risks associated with substandard labor.
Reduces the likelihood of workers relying on government social safety nets by mandating they are paid a higher, self-sufficient wage.
Protects local construction companies from being undercut by out-of-state firms that might otherwise import cheap labor to win contracts.
Imposes significant government interference in the free market by dictating the wages that private and non-profit entities must pay to contractors.
Increases the financial burden on the healthcare system, which will likely lead to higher insurance premiums and costs for consumers.
Places a heavy regulatory burden on businesses regarding compliance, certified payrolls, and administration, stifling efficiency and flexibility in the construction sector.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 6 additions

SECTION 1. Chapter 28-5 of the General Laws entitled "Fair Employment Practices" is hereby amended by adding thereto the following section: 28-5-44. Labor and payment of debts by contractors. Any contract for capital improvements to any healthcare facility as defined in § 23-17-2 including, but not limited to, construction, reconstruction, renovation, demolition, and alteration, shall adhere to the requirements and obligations in chapter 13 of title 37 which requires all relevant contractors and subcontractors performing work on the healthcare facility to pay their employees, as defined in § 37-13-7.

SECTION 2. This act shall take effect upon passage.