Gradually increases the minimum wage for employees receiving gratuities between January 1, 2026 through January 1, 2031 to the minimum wage established in § 28-12-3 exclusive of gratuities.
Summary
H5136 would amend Rhode Island’s minimum wage law to create a scheduled phase-in for tipped workers, also referred to as employees receiving gratuities. Under current law, tipped employees may be paid a lower cash wage so long as tips make up the difference to the regular minimum wage. This bill would steadily raise the required cash wage for tipped workers beginning January 1, 2026, and continuing each year through January 1, 2031, until the cash wage equals the full state minimum wage, meaning the tip credit would effectively be eliminated by 2031.
The bill also updates the general minimum wage schedule in § 28-12-3 to reflect the state’s existing increases and to set future annual increases from 2026 through 2031, reaching $24 per hour by January 1, 2031. In practical terms, it ties tipped-worker pay to the same wage floor as other employees over time, while preserving existing rules for nonprofit student workers and other wage provisions referenced in the statute.
Impact
This bill would directly amend Rhode Island General Laws §§ 28-12-3 and 28-12-5, changing both the statewide minimum wage schedule and the special wage rules for tipped employees in restaurants, hotels, and similar industries. It would phase out the tipped minimum wage differential by requiring the cash wage for tipped workers to rise in steps until it matches the standard minimum wage, affecting employers that currently rely on the tip credit and employees who receive gratuities. The bill would also require the Department of Labor and Training to continue administering and enforcing the revised wage structure, including proof requirements for employers claiming the gratuity allowance.
Sentiment
The available record shows no committee transcript or recorded votes, so there is no direct evidence of debate, amendments, or formal support/opposition in the materials provided. Based on the bill’s structure and caption, the measure appears to reflect a policy preference for gradually raising wages and reducing reliance on tips to meet minimum pay standards. The gradual phase-in suggests an attempt to balance worker pay increases with employer adjustment time.
Contention
The main point of contention is likely to be the elimination of the tipped wage differential, which would raise labor costs for restaurants, hotels, and other tipped-service employers. Supporters would likely view the bill as improving wage stability and reducing dependence on gratuities for low-wage workers, while opponents may argue it could increase operating costs, affect pricing, or alter tipping practices. Because no hearing transcript or vote history is included, specific named stakeholders or arguments are not available in the record provided.