Rhode Island Minimum Wage Rate Set to Increase to $15 by 2025
Rhode Island has amended its minimum wage law to raise the state’s minimum wage rate to $15 per hour by Jan. 1, 2025.
The current minimum wage rate in Rhode Island is $11.50 per hour. Under state law, employers must pay their employees a wage rate that is at least equal to the state’s minimum wage rate. The minimum wage rate in Rhode Island will increase gradually until it reaches $15 per hour.
- $12.25 per hour on Jan. 1, 2022
- $13 per hour on Jan. 1, 2023
- $14 per hour on Jan. 1, 2024
- $15 per hour on Jan. 1, 2025
Rhode Island allows employers to pay a lower minimum wage rate to tipped employees. The state allows employers to pay this lower wage, also known as a “cash wage,” because it assumes that the employee’s tips will be sufficient to offset the difference between the cash wage and the state’s minimum wage rate.
The cash wage for tipped employees in Rhode Island is $3.89 per hour. Employers are required to subsidize their tipped employees’ wages if the employees’ tips are not enough to enable them to earn wages at a rate that is at least equal to the state’s minimum wage rate.
Impact on Employers
Employers should review and adjust their employee payroll practices and procedures to account for these upcoming minimum wage increases.
Important Dates To Remember
Oct. 1, 2020
Rhode Island’s minimum wage rate increased to $11.50 per hour
May 20, 2021
Jan. 1, 2022
Rhode Island minimum wage rate will increase to $12.25 per hour
For More on Rhode Island Minimum Wage Rates
For more information on Rhode Island Minimum wage rates, or which federal employment laws apply to your company please reach out to Next Generation Payroll.
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