Commencing January 1, 2026, this act would increase the minimum wage for employees receiving gratuities from the current $3.89 to $6.75 per hour.
Summary
This bill amends Rhode Island’s minimum wage law for employees who customarily receive gratuities, such as tipped workers in restaurants, hotels, and similar industries. Under current law, employers may count tips toward the minimum wage by paying a lower direct cash wage. The bill keeps that structure in place but raises the required cash wage for tipped employees from $3.89 per hour to $6.75 per hour, beginning January 1, 2026.
The measure also preserves existing provisions governing gratuity-based wage calculations, employer proof requirements, employee hearing rights, incentive-based pay arrangements, and the special rule for certain nonprofit full-time student workers. It would take effect immediately upon passage, but the wage increase itself is delayed until the start of 2026.
Impact
The bill would directly amend § 28-12-5 of the Rhode Island General Laws, changing the minimum cash wage that employers may pay tipped employees while still using tips as part of the wage calculation. It would increase labor costs for covered employers in restaurants, hotels, and other industries where gratuities are customary, while increasing guaranteed direct wages for tipped workers. The bill does not eliminate the tip credit system; it adjusts the amount of the cash wage floor within that system.
Sentiment
Based on the bill’s text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment cannot be measured from debate history. The bill’s sponsor list suggests support from multiple senators, indicating interest in raising tipped workers’ base pay. The measure is framed as a wage increase for workers receiving gratuities, which typically draws support from labor advocates and worker-protection proponents.
Contention
The central point of contention is likely the size and timing of the increase in the tipped minimum wage. Supporters would view the bill as improving income stability for tipped workers, while opponents may argue that a higher cash wage could increase operating costs for restaurants, hotels, and other affected employers and potentially affect pricing, staffing, or tip-credit practices. No specific objections, amendments, or recorded vote splits were provided, so the exact positions of legislators, employers, or labor groups are not documented in the supplied materials.