2019 -- S 0374

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGE--GRATUITIES

     

     Introduced By: Senators Goldin, Goodwin, Quezada, Euer, and Murray

     Date Introduced: February 13, 2019

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 28-12-5 of the General Laws in Chapter 28-12 entitled "Minimum

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Wages" is hereby amended to read as follows:

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     28-12-5. Employees receiving gratuities.

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

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

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

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

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

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

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

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directly or indirectly by the employee for services rendered.

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

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

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

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

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

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

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

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less than three dollars and eighty-nine cents ($3.89) per hour.

 

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     (1) Commencing January, 1, 2020, the cash wage shall not be less than four dollars and

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fifty cents ($4.50) per hour;

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     (2) Commencing January, 1, 2021, the cash wage shall not be less than six dollars ($6.00)

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per hour;

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     (3) Commencing January, 1, 2022, the cash wage shall not be less than seven dollars and

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fifty cents ($7.50) per hour;

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     (4) Commencing January, 1, 2023, the cash wage shall not be less than nine dollars

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($9.00) per hour;

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     (5) Commencing January, 1, 2024, the cash wage shall not be less than the minimum

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hourly wage provided in § 28-12-3, and gratuities received by employees shall be in addition to,

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and not a component of, the minimum hourly wage provided in § 28-12-3.

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

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

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

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desire.

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

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

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

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

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

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

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

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

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

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

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

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

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     (g) Any employer who pays a minimum hourly wage sufficient to meet or exceed the

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requirements of this section is not required to alter their wages.

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     SECTION 2. 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 -- MINIMUM WAGE--GRATUITIES

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     This act would incrementally increase from the current three dollars and eighty-nine cents

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($3.89) per hour subminimum wage for tipped workers to nine dollars ($9.00) per hour on

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January 1, 2023. Starting on January 1, 2024, the minimum hourly wage for tipped workers

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would be equal to the state's regular minimum hourly wage.

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     This act would take effect upon passage.

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