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S 2325Standards & Wages

Labor and Labor Relations - Minimum Wages

Raises the minimum wage to $17.00 by 2027 and links future increases to inflation rates starting in 2028.

Held for study
Population
Affected
28
Email Legislator
Introduced Jan 23, 2026Committee Senate Labor & Gaming

Plain-English Summary

This legislation amends current labor laws to increase the state minimum wage. It establishes a schedule raising 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, 2028, the bill introduces an automatic cost-of-living adjustment. Future increases will be tied to the Consumer Price Index (CPI-U) for the Northeast Region, calculated based on the previous four fiscal years. These automatic increases are capped and cannot exceed 12% in any given adjustment period.

For younger readers

This new rule changes the lowest amount of money a boss is allowed to pay a worker for one hour of work. Right now, there is a set price, but this bill says that by the year 2027, bosses must pay at least $17.00 per hour. After that, starting in 2028, the price will go up automatically if the cost of things like food and clothes goes up. This helps make sure that the money workers earn can still buy the things they need, even if prices in stores get higher.

Who & Where It Applies

Impacted groups
Low-wage EmployeesSmall Business OwnersCorporate EmployersTeenage WorkersConsumers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Guarantees an increase in the standard of living for low-wage workers by raising the hourly floor to $17.00, helping to close the gap between wages and the cost of living.
  • Establishes a permanent mechanism to protect worker purchasing power by tying future wage increases to inflation (CPI), preventing wages from stagnating while prices rise.
  • Reduces economic inequality and reliance on government assistance programs by ensuring corporations pay a wage closer to a sustenance level.
  • The target of $17.00 per hour by 2027 may still fall short of a true "living wage" required to afford housing and basic needs in Rhode Island by the time it takes effect.
  • The 12% cap on inflation adjustments could result in real wage losses for workers during periods of extreme hyperinflation where costs rise faster than the allowed limit.
  • The four-year lookback period for calculating inflation averages might be too slow to react to sudden economic shifts, delaying necessary help for workers.
For Conservatives
  • Potentially reduces the burden on taxpayer-funded social safety nets (welfare) by shifting the responsibility of sustenance income to private employers.
  • The 12% cap on automatic increases provides business owners with a necessary safeguard against extreme, unpredictable wage spikes in a single year.
  • Using a four-year average for CPI calculations offers more stability and predictability for long-term business financial planning compared to volatile year-over-year adjustments.
  • Imposes higher mandatory operating costs on businesses, which could lead to reduced hiring, layoffs, or the closure of small businesses operating on thin margins.
  • Removes legislative oversight from future wage hikes by creating an "autopilot" increase based on CPI, potentially fueling a wage-price inflation spiral.
  • Interferes with the free market by artificially setting price floors for labor rather than allowing wages to be determined by supply, demand, and merit.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 5 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.

(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) per hour.

(r) Commencing January 1, 2028, 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 four (4) previous fiscal years, but in no event to exceed twelve percent (12%).

SECTION 2. This act shall take effect upon passage.