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S 2930Standards & Wages

Labor and Labor Relations - Minimum Wages

This bill increases the Rhode Island minimum wage to $24.00 per hour starting on January 1, 2027.

Held for study
Population
Affected
35
Email Legislator
Introduced Mar 4, 2026Committee Senate Labor & Gaming

Plain-English Summary

This legislation amends Rhode Island's minimum wage laws to significantly increase the hourly rate scheduled for 2027. Under current statutes, the minimum wage is set to rise incrementally over several years, reaching $17.00 per hour on January 1, 2027. This bill modifies that specific scheduled increase, mandating that the minimum wage instead be raised to $24.00 per hour on January 1, 2027. The bill leaves the previously scheduled increases for prior years, such as the $16.00 rate for 2026, unchanged.

For younger readers

This law changes the rules for how much money workers in Rhode Island must be paid. Right now, there is a plan for pay to go up a little bit every year. For the year 2027, the plan was to pay workers at least $17 for every hour they work. This new law changes that number to $24. So, starting in January 2027, workers will be paid at least $24 for every hour they work. This means people with jobs will earn more money than the old law promised.

Who & Where It Applies

Impacted groups
Hourly wage workersSmall business ownersLarge corporationsConsumersState and municipal governments (as employers)
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Provides a substantial wage increase that moves closer to a true living wage, helping to lift low-income workers and their families out of poverty and reducing income inequality.
  • Strengthens the social safety net by reducing the number of full-time workers who must rely on government assistance to meet basic needs like housing and food.
  • Stimulates the local economy by putting more disposable income into the hands of workers who are most likely to spend it immediately within their communities.
  • Could inadvertently harm locally-owned small businesses that operate on thin margins, potentially leading to closure or consolidation by larger corporations that can absorb the labor costs.
  • Might accelerate the automation of entry-level jobs, potentially reducing the total number of employment opportunities available to low-skilled workers.
  • May lead to an increase in the cost of essential goods and services, which could disproportionately impact the very populations the wage hike is intended to help.
For Conservatives
  • Reduces the burden on taxpayers by decreasing the number of individuals dependent on state-funded welfare programs and subsidies to supplement low wages.
  • Potentially increases state income tax revenue and sales tax revenue due to higher earnings and spending among the workforce.
  • Encourages individuals to enter the workforce and stay off unemployment rolls by making work significantly more financially rewarding than government dependency.
  • Imposes a drastic financial burden on businesses, violating principles of corporate freedom and potentially forcing layoffs or business closures due to government overreach.
  • Likely to drive significant inflation within the state, as businesses raise prices to cover a 41% wage hike, devaluing the currency and hurting consumers.
  • Interferes with the free market by artificially setting price floors for labor, rather than allowing supply and demand to determine appropriate wage levels.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 3 additions · 2 deletions

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 twenty-four dollars ($17.00) ($24.00) per hour.

SECTION 2. This act shall take effect upon passage.