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S 2620Standards & Wages

Labor and Labor Relations - Minimum Wages

This bill raises the Rhode Island minimum wage to $20.00 per hour starting on January 1, 2027.

Held for study
Population
Affected
35
Email Legislator
Introduced Feb 13, 2026Committee Senate Labor & Gaming

Plain-English Summary

This legislation amends the existing minimum wage schedule for the state of Rhode Island. Under current law, the minimum wage is set to gradually increase to $17.00 per hour by January 1, 2027. This bill modifies that final scheduled increase. Instead of rising to $17.00, the minimum wage will increase to $20.00 per hour commencing January 1, 2027. This mandate applies to all employers currently subject to state minimum wage laws.

For younger readers

This law is about the money people earn when they have a job. Right now, there is a rule that says the lowest amount of money a worker can be paid is going up a little bit every year. The old rule said that by the year 2027, workers had to be paid at least $17.00 for every hour they worked. This new law changes that number. Now, starting in 2027, businesses must pay their workers at least $20.00 for every hour. This means workers will get more money in their paychecks than the old rule promised.

Who & Where It Applies

Impacted groups
Low-wage workersSmall business ownersCorporate employersConsumersTeenagers entering the workforce
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Significantly increases the income of low-wage workers, helping to narrow the wealth gap and moving closer to a living wage that reflects the actual cost of living in Rhode Island.
  • Strengthens the social safety net by putting more money directly into the hands of the working poor, potentially reducing their reliance on government assistance programs like SNAP or housing vouchers.
  • Stimulates the local economy by redistributing corporate profits to workers who are more likely to spend their increased earnings immediately on goods and services within the community.
  • Does not address the sub-minimum wage for tipped employees, leaving a significant portion of the service industry workforce vulnerable to wage instability and reliant on tips.
  • The increase does not take effect until 2027, meaning workers struggling with high inflation and housing costs today must wait several years for this specific relief.
  • By 2027, inflation may have risen enough that $20.00 per hour still does not constitute a true "living wage" required to afford basic necessities in the state.
For Conservatives
  • Promotes the value of work over government dependence by ensuring that employment provides a higher income than welfare or unemployment benefits, encouraging workforce participation.
  • Provides businesses with a clear, long-term timeline for wage increases, allowing for better financial forecasting and budget planning compared to sudden, unexpected hikes.
  • Potentially increases state tax revenue through higher income taxes collected from workers and sales taxes generated by increased consumer spending power.
  • Imposes a substantial financial burden on small businesses operating with thin profit margins, potentially leading to closures, layoffs, or a reduction in hiring.
  • Represents government overreach into the free market by artificially setting price floors for labor, rather than allowing supply and demand to dictate wages.
  • Likely to drive consumer price inflation as businesses increase the costs of goods and services to offset the significantly higher payroll expenses.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 3 additions · 1 deletion

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) twenty dollars ($20.00) per hour.

SECTION 2. This act shall take effect upon passage.