S 2923Standards & Wages

Labor and Labor Relations - Minimum Wages

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

Held for study

Population
Affected

Introduced Mar 4, 2026Committee Senate Labor & Gaming

Plain-English Summary

This bill updates Rhode Island's minimum wage laws to increase worker pay over the next few years. It mandates that the minimum wage rise to $16.00 per hour on January 1, 2026, and then to $17.00 per hour on January 1, 2027. Additionally, starting in 2028, the bill introduces an automatic annual adjustment based on the Consumer Price Index (CPI). This means the minimum wage will increase to keep up with inflation and the cost of living, ensuring it does not decrease even if the CPI drops.

For younger readers

This new rule changes the lowest amount of money a boss is allowed to pay a worker. Right now, there is a limit, but this rule makes it go higher. In the year 2026, the amount will go up to $16.00 for every hour of work. In 2027, it will go up to $17.00. After that, starting in 2028, the pay will go up automatically if the price of things like food and clothes goes up. This helps make sure workers can still buy what they need even if things get more expensive.

Who & Where It Applies

Impacted groups

Hourly employeesSmall business ownersLow-income familiesConsumersHuman resource departments

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Guarantees wage increases for low-income workers, directly addressing poverty and helping to close the income inequality gap in the state.
Establishes an automatic cost-of-living adjustment (COLA) based on the Consumer Price Index, preventing the minimum wage from stagnating against inflation in the future.
Strengthens the social safety net by ensuring that the wage floor cannot decrease, providing financial stability for vulnerable populations regardless of economic downturns.
The timeline for reaching $17.00 per hour is delayed until 2027, which may not provide immediate enough relief for families currently struggling with the high cost of living.
Does not explicitly address or eliminate sub-minimum wages for tipped workers, leaving a vulnerable segment of the workforce dependent on fluctuating tips.
A $17.00 wage by 2027 may still fall short of a true "living wage" required to afford housing and basic necessities in Rhode Island, given current inflation projections.

For Conservatives

By increasing the earning potential of low-wage workers, the bill may reduce reliance on state-funded welfare programs and food assistance, lightening the burden on taxpayers.
Provides business owners with a predictable, defined schedule for wage increases through 2027, allowing for better long-term financial planning and budgeting.
Tying future increases to an economic index (CPI) removes the minimum wage from constant political debate and arbitrary legislative hikes, creating a more standardized approach.
Interferes with the free market by dictating wage floors, restricting the freedom of business owners to negotiate pay rates based on merit, productivity, and local economic conditions.
Mandatory wage hikes will likely increase operating costs for businesses, potentially forcing them to raise prices for consumers and fueling inflation.
Higher labor costs may force small businesses to cut employee hours, reduce staff, or accelerate the shift toward automation, ultimately reducing job opportunities for low-skilled workers.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 6 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.

(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 calendar year 2027, but in no event shall the minimum wage decrease to reflect any decrease in the CPI-U.

SECTION 2. This act shall take effect upon passage.