Rhode Island Senate Bill S2408

Rhode Island 2026 Regular Session

• Introduced: 1/30/26
• Refer: 1/30/26

Caption

RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES

Summary

S2408 amends Rhode Island’s minimum wage law for employees who receive gratuities, commonly known as tipped workers. The bill keeps the existing structure that allows employers in restaurants, hotels, and similar industries to count a portion of tips toward the minimum wage, but it changes the cash wage floor for those workers. Under the bill, the tipped cash wage would rise from $3.89 per hour to $6.75 per hour beginning January 1, 2027. The bill also preserves the current rules governing gratuity allowances, employer proof requirements, employee hearing rights, incentive-based wage arrangements, and the special wage provision for certain nonprofit full-time students. It takes effect immediately upon passage, but the wage increase itself is delayed until 2027. In practical terms, the measure would increase labor costs for employers that rely on the tipped wage system and raise base pay for affected service workers while leaving the tip-credit framework in place.

Impact

This bill would amend § 28-12-5 of the Rhode Island General Laws, which governs employees receiving gratuities under the state minimum wage law. Its main legal effect is to increase the minimum cash wage for tipped employees from $3.89 to $6.75 per hour starting January 1, 2027, while leaving the employer tip-credit structure intact. The change would directly affect restaurants, hotels, and other industries that customarily use tipped labor, as well as tipped employees whose earnings depend on a combination of wages and gratuities.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes, the available record suggests a straightforward policy proposal rather than a heavily debated measure. The sponsors appear to support a phased increase in tipped wages, and the bill’s caption frames it as a wage increase for employees receiving gratuities. No contrary viewpoints are documented in the provided materials, so there is no clear evidence of formal support or opposition beyond the bill’s introduction.

Contention

The likely point of contention is the size of the increase and its effect on the tipped wage system. Supporters would view the bill as a raise for low-wage service workers and a step toward higher base pay, while employers in restaurants, hotels, and other tipped industries may object to increased labor costs and changes to longstanding wage practices. Another possible issue is that the bill does not eliminate the tip credit; some advocates for tipped workers may see that as insufficient, while others may prefer the gradual approach because it preserves the existing gratuity framework.