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H7960aaLabor Relations

Labor and Labor Relations - Payment of Wages

This bill gives the Department of Labor and Training more time to schedule hearings and decide wage dispute cases.

Introduced65 Yea0 Nay10 Not voting
Population
Affected
15
Email Legislator
Introduced Feb 27, 2026Committee House Labor

Plain-English Summary

This bill changes the timelines for the Rhode Island Department of Labor and Training to handle wage dispute complaints. Previously, the department had to schedule hearings within 30 days of a complaint and issue a decision within 30 days after the hearing. The bill extends these deadlines, allowing the department to schedule hearings and issue decisions in a "reasonable and timely manner," up to 120 days. It also removes similar 5-day and 10-day deadlines for scheduling hearings and issuing decisions regarding prevailing wage violations by contractors.

For younger readers

When a worker doesn't get paid the money they earned, they can complain to a state department. The department then has a meeting, called a hearing, to figure out what happened. Before, the department had to hold these meetings and make a decision very fast, usually in just a few weeks. This bill changes the rules so the department has more time—up to 120 days—to hold the meeting and make its final decision about the worker's pay.

Who & Where It Applies

Impacted groups
Employees filing wage complaintsEmployers and business ownersDepartment of Labor and Training staffGovernment contractorsHearing officers
Impacted communities
All

Constitutional & Fiscal Check

None Likely. The bill primarily adjusts administrative deadlines for state labor hearings. It does not infringe upon free speech, unreasonable searches, or due process; in fact, extending the timeline for hearings and orders may enhance due process by providing all parties more adequate time to prepare.

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Gives the Department of Labor and Training more realistic timelines to thoroughly investigate wage theft, which disproportionately affects low-income and disadvantaged workers.
  • Prevents wage theft cases from being dismissed or mishandled due to strict, unmanageable administrative deadlines, ensuring workers have a better chance at getting the pay they are owed.
  • Strengthens the capacity of a public agency to enforce labor laws effectively by providing adequate time to gather evidence and conduct fair hearings against corporate employers.
  • Delays the time it takes for workers who have been victims of wage theft to receive their stolen wages, which can cause severe financial hardship for low-income families.
  • Extends the period that exploitative employers can hold onto unpaid wages without facing immediate consequences or penalties.
  • The vague language of "reasonable and timely manner" could lead to unnecessary bureaucratic delays that frustrate workers seeking prompt justice.
For Conservatives
  • Gives businesses more time to prepare their defense and gather records when accused of wage violations, rather than being rushed into a hearing within a few days.
  • Reduces the administrative burden on government agencies by eliminating overly strict deadlines, potentially lowering the need to hire more government bureaucrats to meet tight quotas.
  • Prevents hasty government decisions by giving the hearing officer ample time to review the facts before imposing heavy fines or penalties on businesses.
  • Creates uncertainty for businesses involved in labor disputes, as they may have to wait up to 120 days to resolve a complaint and clear their name.
  • Replaces strict, predictable government deadlines with vague terms like "reasonable and timely manner," giving unelected bureaucrats too much discretion.
  • Extends the period during which a business might be subject to a stressful and costly government investigation before a final order is issued.

Votes

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Full Bill Text

2 versions
Changes to existing Rhode Island law · 7 additions · 6 deletions

It is enacted by the General Assembly as follows:

SECTION 1. Section 28-14-19 of the General Laws in Chapter 28-14 entitled "Payment of Wages" is hereby amended to read as follows: 28-14-19. Enforcement powers and duties of director of labor and training.

(a) It shall be the duty of the director to ensure compliance with the provisions of this chapter and chapter 12 of this title. The director, or the director’s designee, may investigate any violations thereof, institute or cause to be instituted actions for the collection of wages, and institute action for penalties or other relief as provided for within and pursuant to those chapters. The director, or the director’s authorized representatives, are empowered to hold hearings, and the director or the director’s designee shall cooperate with any employee in the enforcement of a claim against the employee’s employer in any case whenever, in the opinion of the director or the director’s designee, the claim is just and valid.

(b) Upon receipt of a complaint or conducting an inspection under applicable law, the director, or the director’s appropriate departmental designee, is authorized to investigate to determine compliance with this chapter and chapter 12 of this title. The director or designee shall forward all complaints to the investigatory team within the department of labor and training who shall conduct the initial screening, investigation, and field audits, as set forth in § 28-14-19.1.

(c) With respect to all complaints deemed just and valid by the investigatory team, the director, or the director’s designee, shall order a hearing thereon at a time and place to be specified, and shall give notice thereof, together with a copy of the complaint or the purpose thereof, or a statement of the facts disclosed upon investigation, which notice shall be served personally or by mail on any person, business, corporation, or entity of any kind affected thereby. The hearing shall be scheduled within thirty (30) days of in a reasonable and timely manner, not to exceed one hundred twenty (120) days after service of a formal complaint as provided herein. The person, business, corporation, or entity shall have an opportunity to be heard in respect to the matters complained of at the time and place specified in the notice. The hearing shall be conducted by the director or the director’s designee. The hearing officer in the hearing shall be deemed to be acting in a judicial capacity, and shall have the right to issue subpoenas, administer oaths, and examine witnesses. The enforcement of a subpoena issued under this section shall be regulated by Rhode Island civil practice law and rules. The hearing shall be expeditiously conducted and upon such hearing the hearing officer shall determine the issues raised thereon and shall make a determination and enter an order within thirty (30) days of in a reasonable and timely manner, not to exceed one hundred twenty (120) days after the close of the hearing, and forthwith serve a copy of the order, with a notice of the filing thereof, upon the parties to the proceeding, personally or by mail. The order shall dismiss the complaint or direct payment of any wages and/or benefits found to be due and/or award such other appropriate relief or penalties authorized under this chapter and chapter 12 of this title, and the order may direct payment of reasonable attorney’s fees and costs to the complaining party. Interest at the rate of twelve percent (12%) per annum shall be awarded in the order from the date of the nonpayment to the date of payment.

(d) The order shall also require payment of a further sum as a civil penalty in an amount up to two (2) times the total wages and/or benefits found to be due, exclusive of interest, which shall be shared equally between the department and the aggrieved party. In determining the amount of any penalty to impose, the director, or the director’s designee, shall consider the size of the employer’s business, the good faith of the employer, the gravity of the violation, the previous violations, and whether or not the violation was an innocent mistake or willful.

(e) The director may institute any action to recover unpaid wages or other compensation or obtain relief as provided under this section with or without the consent of the employee or employees affected.

(f) No agreement between the employee and employer to work for less than the applicable wage and/or benefit rate or to otherwise work under conditions in violation of applicable law is a defense to an action brought pursuant to this section.

(g) The director shall notify the contractors’ registration board of any order issued or any determination hereunder that an employer has violated this chapter, chapter 12 of this title, or chapter 13 of title 37. The director shall notify the tax administrator of any determination hereunder that may affect liability for an employer’s payment of wages and/or payroll taxes.

SECTION 2. Section 37-13-14.1 of the General Laws in Chapter 37-13 entitled "Labor and Payment of Debts by Contractors" is hereby amended to read as follows: 37-13-14.1. Enforcement — Hearings.

(a) Before issuing an order or determination, the director of labor and training shall order a hearing thereon at a time and place to be specified, and shall give notice thereof, together with a copy of the complaint or the purpose thereof, or a statement of the facts disclosed upon investigation, which notice shall be served personally or by mail on any person, firm, or corporation affected thereby. The person, firm, or corporation shall have an opportunity to be heard in respect to the matters complained of at the time and place specified in the notice, which time shall be not less than five (5) days from the service of the notice personally or by mail. The hearing shall be held within ten (10) days from the order of hearing. The hearing shall be conducted by the director of labor and training or his or her designee. The hearing officer in the hearing shall be deemed to be acting in a judicial capacity and shall have the right to issue subpoenas, administer oaths, and examine witnesses. The enforcement of a subpoena issued under this section shall be regulated by Rhode Island civil practice law and rules. The hearing shall be expeditiously conducted, and upon such hearing, the hearing officer shall determine the issues raised thereon and shall make a determination and enter an order within ten (10) days of after the close of the hearing, and forthwith serve a copy of the order, with a notice of the filing thereof, upon the parties to the proceeding, personally or by mail. The order shall dismiss the charges or direct payment of wages or supplements found to be due, including interest at the rate of twelve percentum (12%) per annum from the date of the underpayment to the date of payment, and may direct payment of reasonable attorney’s fees and costs to the complaining party.

(b) In addition to directing payment of wages or supplements including interest found to be due, the order shall also require payment of a further sum as a civil penalty in an amount up to three times the total amount found to be due. Further, if the amount of salary owed to an employee pursuant to this chapter but not paid to the employee in violation of thereof exceeds five thousand dollars ($5,000), it shall constitute a misdemeanor and shall be referred to the office of the attorney general. The misdemeanor shall be punishable for a period of not more than one year in prison and/or fined not more than one thousand dollars ($1,000). In assessing the amount of the penalty, due consideration shall be given to the size of the employer’s business, the good faith of the employer, the gravity of the violation, the history of previous violations, and the failure to comply with recordkeeping or other nonwage requirements. The surety of the person, firm, or corporation found to be in violation of the provisions of this chapter shall be bound to pay any penalties assessed on such person, firm, or corporation. The penalty shall be paid to the department of labor and training for deposit in the state treasury; provided, however, it is hereby provided that the general treasurer shall establish a dedicated “prevailing wages enforcement fund” for the purpose of depositing the penalties paid as provided herein. There is hereby appropriated to the annual budget of the department of labor and training the amount of the fund collected annually under this section, to be used at the direction of the director of labor and training for the sole purpose of enforcing prevailing wage rates as provided in this chapter.

(c) For the purposes of this chapter, each day or part thereof of violation of any provision of this chapter by a person, firm, or corporation, whether the violation is continuous or intermittent, shall constitute a separate and succeeding violation.

(d) In addition to the above, any person, firm, or corporation found in violation of any of the provisions of this chapter by the director of labor and training, an awarding authority, or the hearing officer, shall be ineligible to bid on, or be awarded work by, an awarding authority or perform any such work for a period of no less than eighteen (18) months and no more than thirty- six (36) months from the date of the order entered by the hearing officer. Once a person, firm, or corporation is found to be in violation of this chapter, all pending bids with any awarding authority shall be revoked, and any bid awarded by an awarding authority prior to the commencement of the work shall also be revoked.

(e) In addition to the above, any person, firm, or corporation found to have committed two

(2) or more willful violations in any period of eighteen (18) months of any of the provisions of this chapter by the hearing officer, which violations are not arising from the same incident, shall be ineligible to bid on, or be awarded work by, an awarding authority or perform any work for a period of sixty (60) months from the date of the second violation.

(f) The order of the hearing officer shall remain in full force and effect unless stayed by order of the superior court.

(g) The director of labor and training, awarding authority, or hearing officer shall notify the bonding company of any person, firm, or corporation suspected of violating any section of this chapter. The notice shall be mailed certified mail and shall enumerate the alleged violations being investigated.

(h) In addition to the above, any person, firm, or corporation found to have willfully made a false or fraudulent representation on certified payroll records shall be referred to the office of the attorney general. A first violation of this section shall be considered a misdemeanor and shall be punishable for a period of not more than one year in prison and/or fined one thousand dollars ($1,000). A second or subsequent violation of this section shall be considered a felony and shall be punishable for a period of not more than three (3) years imprisonment, a fine of three thousand dollars ($3,000), or both. Further, any person, firm, or corporation found to have willfully made a false or fraudulent representation on certified payroll records shall be required to pay a civil penalty to the department of labor and training in an amount of no less than two thousand dollars ($2,000) and not greater than fifteen thousand dollars ($15,000) per representation.

SECTION 3. This act shall take effect upon passage.