New Employment Laws in Rhode Island: What HR Pros Need to Know
For employers in Rhode Island, it’s important to get a handle on the state’s latest employment laws. In 2023, Rhode Island welcomed new legislation that enhanced employee protections, including a higher minimum wage and new pay transparency requirements..
As an employer, you're responsible for staying on top of updates to state employment laws. Following these laws will help you navigate legal headaches and nurture a positive work environment for everyone. Being informed allows you to manage your workforce constructively, maintain high employee morale, and protect your company from potential legal fallout. Failure to recognize these legal changes can result in serious risks, including financial penalties, lawsuits, and a tarnished reputation.
Rhode Island Labor Statistics
- Employs around 518,000 people
- 3.7% unemployment rate (US rate 4.3%)
- Top industries (by % GDP):
- Finance and insurance
- Healthcare and social assistance
- Manufacturing
- $77.3 billion GDP
- Median household income is nearly $70,305
- Roughly 1,100 jobs created in April 2024
5 Rhode Island Labor Laws Employers Need to Know
Agricultural Labor Laws
Rhode Island has specific regulations made to protect agricultural workers. These rules cover working hours, rest breaks, and minimum wage standards. Employers have to follow these regulations to avoid penalties and ensure the fair treatment of employees.
Changes to Overtime Pay
Agricultural workers are now eligible for overtime pay, a pretty big shift from previous regulations where many were exempt. This means that any hours clocked beyond the standard 40-hour workweek now earn a higher pay rate, rewarding those extra efforts.
The overtime pay rate for agricultural workers is set at one and a half times the regular hourly wage. So, if a worker’s normal hourly rate is $15, their overtime rate jumps to $22.50 per hour.
Paid Breaks
Agricultural workers are entitled to rest breaks and meal periods based on the length of their shifts. Plus, minimum wage standards must be met, with specific exceptions and provisions that apply to the agricultural sector.
You can find more detailed information on these regulations by visiting the Rhode Island Department of Labor and Training and the US Department of Labor’s Agricultural Employment page.
Child Labor
Rhode Island has rigid guidelines in place to guarantee the safety of minors when it comes to their employment. These rules limit working hours, types of work minors can do, and mandatory work permits. Minors are prohibited from working during school hours and need a work permit before starting a job. In addition, hazardous jobs are off-limits to minors.
Employers must obtain work permits for all minors and comply with restrictions specific to the age group of the minor in question. Detailed regulations are on the Rhode Island Department of Labor and Training’s Child Labor Laws page.
Family and Medical Leave (FMLA)
Rhode Island's Family and Medical Leave Act (FMLA) allows eligible employees to take unpaid leave for many family and medical reasons while keeping their job secure. This can include time off to care for a family member with a serious health condition, the birth or adoption of a child, or managing the employee's own health complications. Employers must abide by these regulations and handle leave requests according to state law to avoid legal trouble.
Minimum Wage
Effective January 1, 2025, Rhode Island's minimum wage will increase from $14 to $15 per hour. This change is part of a broader effort to improve living standards and decrease wage gaps across the state.
There are a few exceptions to watch out for, though. Certain kinds of seasonal employment, time-limited employment of minors, and unique employee-employer relationships have slightly different rules. Here are a few of the exceptions to Rhode Island minimum wage law:
- Full-time students under 19 who work for nonprofit, religious, or charitable organizations must make at least 90% of the applicable minimum wage. In 2025, that’s $13.50 an hour.
- Employees who are 14 or 15 and work fewer than 24 hours per week must make at least 75% of minimum wage. In 2025, that’s $11.25 an hour.
- Informal employment arrangements in nonprofit, religious, or charitable organizations (domestic service, golf caddies, and more) don’t have a minimum acceptable wage.
- Family employment—a parent employed by a child, or a child employed by a parent—is also not subject to minimum wage.
- Resorts or camps with structured programs operating only between May 1 and October 1, or fewer than seven months out of the year.
- Employees who receive tips must be paid at least $3.89 per hour, assuming they will make up the remaining amount in gratuity. In 2025, that means these employees will need at least $12.11 in tips per hour. But, if wages and tips don’t add up to minimum wage, the employer is required to pay the difference.
Pay Transparency
New pay transparency laws in Rhode Island now require employers to supply pay ranges for positions during the hiring process and to maintain transparent compensation practices. This regulation is intended to promote fairness and reduce gender and racial pay gaps. Employers need to be prepared to disclose salary information and maintain equitable compensation practices.
The Rhode Island Department of Labor and Training's Pay Equity page details the pay transparency requirements.
Adhering to these regulations allows employers to comply with state laws, avoid costly penalties, and create a fair and equitable work environment.