2017 -- S 0510

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LC001770

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- WAGES

     Introduced By: Senators Calkin, Felag, Goodwin, Seveney, and DiPalma

     Date Introduced: March 02, 2017

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 28-12-3 and 28-12-5 of the General Laws in Chapter 28-12

entitled "Minimum Wages" are hereby amended to read as follows:

     28-12-3. Minimum wages.

     (a) Every employer shall pay to each of his or her employees: commencing July 1, 1999,

at least the minimum wage of five dollars and sixty-five cents ($5.65) per hour. Commencing

September 1, 2000, the minimum wage is six dollars and fifteen cents ($6.15) per hour.

     (b) Commencing January 1, 2004, the minimum wage is six dollars and seventy-five

cents ($6.75) per hour.

     (c) Commencing March 1, 2006, the minimum wage is seven dollars and ten cents

($7.10) per hour.

     (d) Commencing January 1, 2007, the minimum wage is seven dollars and forty cents

($7.40) per hour.

     (e) Commencing January 1, 2013, the minimum wage is seven dollars and seventy-five

cents ($7.75) per hour.

     (f) Commencing January 1, 2014, the minimum wage is eight dollars ($8.00) per hour.

     (g) Commencing January 1, 2015, the minimum wage is nine dollars ($9.00) per hour.

     (h) Commencing January 1, 2016, the minimum wage is nine dollars and sixty cents

($9.60) per hour.

     (i) Commencing January l, 2018, the minimum wage is eleven dollars ($11.00) per hour.

     (j) Commencing January 1, 2019, the minimum wage is twelve dollars ($12.00) per hour.

     (k) Commencing January 1, 2020, the minimum wage is thirteen dollars ($13.00) per

hour.

     (1) Commencing January 1, 2021, the minimum wage is fourteen dollars ($14.00) per

hour.

     (m) Commencing January l, 2022, the minimum wage is fifteen dollars ($15.00) per hour.

     (n) Commencing on January l, 2023 and on each January 1 thereafter, the minimum wage

under this section shall be increased by the percentage increase, if any, in the cost of living. The

increase in the cost of living shall be measured by the percentage increase, if any, as of August of

the previous year over the level, as of August of the year preceding that, of the Consumer Price

Index for Urban Wage Earners and Clerical Workers (CPI-W), or its successor index as published

by the United States Department of Labor or its successor agency, with the amount of the

minimum hourly wage increase rounded up to the nearest multiple of five cents ($.05).

     28-12-5. Employees receiving gratuities.

     (a) Every employer shall pay to each of his or her employees who are engaged in any

work or employment in which gratuities have customarily and usually constituted a part of his or

her weekly income, the rate as provided by §§ 28-12-3 and 28-12-3.1.

     (b) Allowance for gratuities as part of the hourly wage rate for restaurants, hotels, and

other industries, except taxicabs and limited public motor vehicles, shall be an amount equal to

the applicable minimum rates as provided by §§ 28-12-3 and 28-12-3.1 less two dollars and

eighty-nine cents ($2.89) per hour. "Gratuities" means voluntary monetary compensation received

directly or indirectly by the employee for services rendered.

     (c) Each employer desiring to deduct for gratuities as part of the minimum rates as

provided in §§ 28-12-3 and 28-12-3.1 wages paid to an employee shall provide substantial

evidence that the amount shall be set out in the formula in subsection (b) of this section; however,

the cash wage shall not be less than two dollars and eighty-nine cents ($2.89) per hour; provided,

however, that commencing January 1, 2016, the cash wage shall increase by fifty cents ($.50) to

an amount not less than three dollars and thirty-nine cents ($3.39) per hour; provided further, that

commencing January 1, 2017, the cash wage shall increase by fifty cents ($.50) to an amount not

less than three dollars and eighty-nine cents ($3.89) per hour. ; provided further, that commencing

January l, 2018, the cash wage shall increase by one dollar and eleven cents ($1.11) to an amount

not less than five dollars ($5.00) per hour; provided further, that commencing January 1, 2019,

the cash wage shall increase by one dollar and twenty five cents ($1.25) to an amount not less

than six dollars and twenty five cents ($6.25) per hour; provided further, that commencing

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January l, 2020, the cash wage shall increase by one dollar and twenty five cents ($1.25) to an

amount not less than seven dollars and fifty cents ($7.50) per hour; provided further, that

commencing January l, 2021, the cash wage shall increase by one dollar and twenty five cents

($1.25) to an amount not less than eight dollars and seventy five cents ($8.75) per hour; provided

further, that commencing January l, 2022, the cash wage shall increase by one dollar and twenty

five cents ($1.25) to an amount not less than ten dollars ($10.00) per hour; provided further, that

commencing January l, 2023, the cash wage shall increase by one dollar and twenty five cents

($1.25) to an amount not less than eleven dollars and twenty five cents ($11.25) per hour;

provided further, that commencing January l, 2024, the cash wage shall increase by one dollar

and twenty five cents ($1.25) to an amount not less twelve dollars and fifty cents ($12.50) per

hour; provided further, that commencing January l, 2025, the cash wage shall increase by one

dollar and twenty five cents ($1.25) to an amount not less than thirteen dollars and seventy five

cents ($13.75) per hour; provided further, that commencing January l, 2026, the cash wage shall

increase by one dollar and twenty five cents ($1.25) to an amount not less than fifteen dollars

($15.00) per hour. Commencing January l, 2027, the cash wage shall be an amount not less than

the applicable minimum hourly rates as provided by§§ 28-12-3 and 28-12-3.1.

     (d) The director of labor and training shall notify employers concerning what type of

proof shall be accepted as substantial evidence for the purpose of this subsection. Employees

involved shall be entitled to a hearing on the question of the amount of deduction if they so

desire.

     (e) In cases where wages are figured by the employer on an incentive basis in such a

manner that an employee of reasonable average ability earns at least the minimum wage

established by §§ 28-12-3 and 28-12-3.1, it shall be taken that the employer has complied with

this statute. It shall be of no concern to the director of labor and training how the employer arrives

at its wage scale so long as it is not unreasonable in its demands on the employee.

     (f) Where, in the case of the employment of a full-time student who has not attained his

or her nineteenth (19th) birthday engaged in the activities of a nonprofit association or

corporation, whose aims and objectives are religious, educational, librarial, or community service

in nature, the employer-employee relationship does exist, the employer shall pay to each such

employee wages at a rate of not less than ninety percent (90%) of the minimum wage as specified

in § 28-12-3. In case of any conflict between provisions of this section and those of § 28-12-3.1,

the provisions of § 28-12-3.1 shall govern.

     SECTION 2. Sections 28-14-19 and 28-14-19.2 of the General Laws in Chapter 28-14

entitled "Payment of Wages" are hereby amended to read as follows:

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     28-14-19. Enforcement powers and duties of director of labor and training.

     (a) It shall be the duty of the director to insure ensure compliance with the provisions of

this chapter 28-14 and 28-12. The director or his or her designee may investigate any violations

thereof, institute or cause to be instituted actions for the collection of wages and institute action

for penalties or other relief as provided for within and pursuant to those chapters. The director or

his or her authorized representatives are empowered to hold hearings and he or she shall

cooperate with any employee in the enforcement of a claim against his or her employer in any

case whenever, in his or her opinion, the claim is just and valid.

     (b) Upon receipt of a complaint or conducting an inspection under applicable law, the

director or his or her appropriate departmental designee is authorized to investigate to determine

compliance with the chapters 28-12 and/or 28-14.

     (c) With respect to all complaints deemed just and valid, the director or his or her

designee shall order a hearing thereon at a time and place to be specified, and shall give notice

thereof, together with a copy of the complaint or the purpose thereof, or a statement of the facts

disclosed upon investigation, which notice shall be served personally or by mail on any person,

business, corporation, or entity of any kind affected thereby. The hearing shall be scheduled

within thirty (30) days of service of a formal complaint determination that the claim is just and

valid as provided herein. The person, business, corporation, or entity shall have an opportunity to

be heard in respect to the matters complained of at the time and place specified in the notice. The

hearing shall be conducted by the director or his or her designee. The hearing officer in the

hearing shall be deemed to be acting in a judicial capacity, and shall have the right to issue

subpoenas, administer oaths, and examine witnesses. The enforcement of a subpoena issued

under this section shall be regulated by Rhode Island civil practice law and rules. The hearing

shall be expeditiously conducted and upon such hearing the hearing officer shall determine the

issues raised thereon and shall make a determination and enter an order within thirty (30) days of

the close of the hearing, and forthwith serve a copy of the order, with a notice of the filing

thereof, upon the parties to the proceeding, personally or by mail. The order shall dismiss the

complaint or direct payment of any wages and/or benefits found to be due and/or award such

other appropriate relief or penalties authorized under chapter 28-12 and/or 28-14, and the order

may direct payment of reasonable attorneys' fees and costs to the complaining party. Interest at

the rate of twelve percent (12%) per annum shall be awarded in the order from the date of the

nonpayment to the date of payment.

     (d) The order shall also require payment of a further sum as a civil penalty in an amount

up to two (2) three (3) times the total wages and/or benefits found to be due, exclusive of interest,

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which shall be shared equally between the department and the aggrieved party. In determining the

amount of any penalty to impose, the director or his or her designee shall consider the size of the

employer's business, the good faith of the employer, the gravity of the violation, the previous

violations and whether or not the violation was an innocent mistake or willful.

     (e) The director may institute any action to recover unpaid wages or other compensation

or obtain relief as provided under this section with or without the consent of the employee or

employees affected.

     (f) No agreement between the employee and employer to work for less than the

applicable wage and/or benefit rate or to otherwise work under and/or conditions in violation of

applicable law is a defense to an action brought pursuant to this section.

     (g) The director shall notify the contractors' registration board of any order issued or any

determination hereunder that an employer has violated chapters 28-12, 28-14 and/or 37-13. The

director shall notify the tax administrator of any determination hereunder that may affect liability

for an employer's payment of wages and/or payroll taxes.

     28-14-19.2. Private right of action to collect wages or benefits and for equitable

relief.

     (a) Any employee or former employee, or any organization representing such an

employee or former employee aggrieved by the failure to pay wages and/or benefits or

misclassification in violation of chapters 28-12 and/or 28-14 may file a civil action in any court of

competent jurisdiction to obtain relief. An aggrieved party shall be entitled to recover any unpaid

wages and/or benefits, compensatory damages, and liquidated damages in an amount up to two

(2) times the amount of unpaid wages and/or benefits owed, as well as an award of appropriate

equitable relief, including reinstatement of employment, fringe benefits and seniority rights, and

reasonable attorneys' fees and costs, and/or such other appropriate relief or penalties authorized

under chapters 28-12 and/or 28-14. In determining the amount of any penalty imposed under this

section, consideration shall be given to the size of the employer's business, the good faith of the

employer, the gravity of the violation, the history of previous violations, and whether or not the

violation was an innocent mistake or willful. Any unpaid fringe benefit contributions owed

pursuant to this section in any form shall be paid to the appropriate benefit fund: however, in the

absence of an appropriate fund, the benefit shall be paid directly to the aggrieved employee.

     (b) An action instituted pursuant to this section may be brought by one or more

employees or former employees individually and/or on behalf of other employees similarly

situated.

     (c) No agreement between the employee and employer to work for less than the

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applicable wage and/or benefit rate or to otherwise work under terms and/or conditions in

violation of applicable law is a defense to an action brought pursuant to this section.

     (d) An employer's responsibility and liability hereunder is solely to the employer's own

employees.

     (e) A civil action filed under this section may be instituted instead of, but not in addition

to, the director of labor and training enforcement procedures authorized by the above referenced

chapters, provided the civil action is filed prior to the date the director of labor and training issues

notice of an administrative hearing.

     (f) The filing of a civil action under this section shall not preclude the director of labor

and training from investigating the matter and/or referring the matter to the attorney general,

contractors ' registration board and/or the tax administrator.

     (g) Any claim hereunder shall be forever barred unless commenced within three (3) six

(6) years after the cause of action accrued.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- WAGES

***

     This act would gradually increase the hourly minimum wage from nine dollars and sixty

cents ($9.60) to fifteen dollars ($15.00) on January 1, 2022, as well as gradually increasing the

hourly minimum wage for employees receiving gratuities from three dollars and eighty-nine cents

($3.89) an hour to fifteen dollars ($15.00) an hour on January 1, 2026.

     This act would take effect upon passage.

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LC001770

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