2019 -- S 0508 | |
======== | |
LC001405 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2019 | |
____________ | |
A N A C T | |
RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES | |
| |
Introduced By: Senators Quezada, Goodwin, Goldin, Cano, and Euer | |
Date Introduced: February 27, 2019 | |
Referred To: Senate Labor | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Sections 28-12-3 and 28-12-5 of the General Laws in Chapter 28-12 |
2 | entitled "Minimum Wages" are hereby amended to read as follows: |
3 | 28-12-3. Minimum wages. |
4 | (a) Every employer shall pay to each of his or her employees: commencing July 1, 1999, |
5 | at least the minimum wage of five dollars and sixty-five cents ($5.65) per hour. Commencing |
6 | September 1, 2000, the minimum wage is six dollars and fifteen cents ($6.15) per hour. |
7 | (b) Commencing January 1, 2004, the minimum wage is six dollars and seventy-five |
8 | cents ($6.75) per hour. |
9 | (c) Commencing March 1, 2006, the minimum wage is seven dollars and ten cents |
10 | ($7.10) per hour. |
11 | (d) Commencing January 1, 2007, the minimum wage is seven dollars and forty cents |
12 | ($7.40) per hour. |
13 | (e) Commencing January 1, 2013, the minimum wage is seven dollars and seventy-five |
14 | cents ($7.75) per hour. |
15 | (f) Commencing January 1, 2014, the minimum wage is eight dollars ($8.00) per hour. |
16 | (g) Commencing January 1, 2015, the minimum wage is nine dollars ($9.00) per hour. |
17 | (h) Commencing January 1, 2016, the minimum wage is nine dollars and sixty cents |
18 | ($9.60) per hour. |
19 | (i) Commencing January 1, 2018, the minimum wage is ten dollars and ten cents ($10.10) |
| |
1 | per hour. |
2 | (j) Commencing January 1, 2019, the minimum wage is ten dollars and fifty cents |
3 | ($10.50) per hour. |
4 | (k) Commencing January 1, 2020, the minimum wage is eleven dollars and fifty cents |
5 | ($11.50) per hour. |
6 | (l) Commencing January 1, 2021, the minimum wage is twelve dollars and fifty cents |
7 | ($12.50) per hour. |
8 | (m) Commencing January 1, 2022, the minimum wage is thirteen dollars and fifty cents |
9 | ($13.50) per hour. |
10 | (n) Commencing January 1, 2023, the minimum wage is fourteen dollars and fifty cents |
11 | ($14.50) per hour. |
12 | (o) Commencing July 1, 2023, the minimum wage is fifteen dollars ($15.00) per hour. |
13 | (p) Commencing January 1, 2024, and on each January 1 thereafter, the minimum wage |
14 | under this section shall be increased by the percentage increase, if any, in the cost of living. The |
15 | increase in the cost of living shall be measured by the percentage increase, if any, as of August of |
16 | the previous year over the level, as of August of the year preceding, of the consumer price index |
17 | for urban wage earners and clerical workers (CPI-W), or its successor index as published by the |
18 | United States Department of Labor or its successor agency, with the amount of the minimum |
19 | hourly wage increase rounded up to the nearest multiple of five cents ($.05). |
20 | 28-12-5. Employees receiving gratuities. |
21 | (a) Every employer shall pay to each of his or her employees who are engaged in any |
22 | work or employment in which gratuities have customarily and usually constituted a part of his or |
23 | her weekly income, the rate as provided by §§ 28-12-3 and 28-12-3.1. |
24 | (b) Allowance for gratuities as part of the hourly wage rate for restaurants, hotels, and |
25 | other industries, except taxicabs and limited public motor vehicles, shall be an amount equal to |
26 | the applicable minimum rates as provided by §§ 28-12-3 and 28-12-3.1 less two dollars and |
27 | eighty-nine cents ($2.89) per hour. "Gratuities" means voluntary monetary compensation received |
28 | directly or indirectly by the employee for services rendered. |
29 | (c) Each employer desiring to deduct for gratuities as part of the minimum rates as |
30 | provided in §§ 28-12-3 and 28-12-3.1 wages paid to an employee shall provide substantial |
31 | evidence that the amount shall be set out in the formula in subsection (b) of this section; however, |
32 | the cash wage shall not be less than two dollars and eighty-nine cents ($2.89) per hour; provided, |
33 | however, that commencing January 1, 2016, the cash wage shall increase by fifty cents ($.50) to |
34 | an amount not less than three dollars and thirty-nine cents ($3.39) per hour; provided further, that |
| LC001405 - Page 2 of 7 |
1 | commencing January 1, 2017, the cash wage shall increase by fifty cents ($.50) to an amount not |
2 | less than three dollars and eighty-nine cents ($3.89) per hour; provided further, that commencing |
3 | July 1, 2019, the cash wage shall increase by one dollar and eleven cents ($1.11) to an amount not |
4 | less than five dollars ($5.00) per hour; provided further, that commencing January 1, 2020, the |
5 | cash wage shall increase by one dollar and twenty-five cents ($1.25) to an amount not less than |
6 | six dollars and twenty-five cents ($6.25) per hour; provided further, that commencing January 1, |
7 | 2021, the cash wage shall increase by one dollar and twenty-five cents ($1.25) to an amount not |
8 | less than seven dollars and fifty cents ($7.50) per hour; provided further, that commencing |
9 | January 1, 2022, the cash wage shall increase by one dollar and twenty-five cents ($1.25) to an |
10 | amount not less than eight dollars and seventy-five cents ($8.75) per hour; provided further, that |
11 | commencing January 1, 2023, the cash wage shall increase by one dollar and twenty-five cents |
12 | ($1.25) to an amount not less than ten dollars ($10.00) per hour; provided further, that |
13 | commencing January 1, 2024, the cash wage shall increase by one dollar and twenty-five cents |
14 | ($1.25) to an amount not less than eleven dollars and twenty-five cents ($11.25) per hour; |
15 | provided further, that commencing January 1, 2025, the cash wage shall increase by one dollar |
16 | and twenty-five cents ($1.25) to an amount not less than twelve dollars and fifty cents ($12.50) |
17 | per hour; provided further, that commencing January 1, 2026, the cash wage shall increase by one |
18 | dollar and twenty-five cents ($1.25) to an amount not less than thirteen dollars and seventy-five |
19 | cents ($13.75) per hour; provided further, that commencing January 1, 2027, the cash wage shall |
20 | increase by one dollar and twenty-five cents ($1.25) to an amount not less than fifteen dollars |
21 | ($15.00) per hour. Commencing January 1, 2028, the cash wage shall be an amount not less than |
22 | the applicable minimum hourly rates as provided by §§ 28-12-3 and 28-12-3.1. |
23 | (d) The director of labor and training shall notify employers concerning what type of |
24 | proof shall be accepted as substantial evidence for the purpose of this subsection. Employees |
25 | involved shall be entitled to a hearing on the question of the amount of deduction if they so |
26 | desire. |
27 | (e) In cases where wages are figured by the employer on an incentive basis in such a |
28 | manner that an employee of reasonable average ability earns at least the minimum wage |
29 | established by §§ 28-12-3 and 28-12-3.1, it shall be taken that the employer has complied with |
30 | this statute. It shall be of no concern to the director of labor and training how the employer arrives |
31 | at its wage scale so long as it is not unreasonable in its demands on the employee. |
32 | (f) Where, in the case of the employment of a full-time student who has not attained his |
33 | or her nineteenth (19th) birthday engaged in the activities of a nonprofit association or |
34 | corporation, whose aims and objectives are religious, educational, librarial, or community service |
| LC001405 - Page 3 of 7 |
1 | in nature, the employer-employee relationship does exist, the employer shall pay to each such |
2 | employee wages at a rate of not less than ninety percent (90%) of the minimum wage as specified |
3 | in § 28-12-3. In case of any conflict between provisions of this section and those of § 28-12-3.1, |
4 | the provisions of § 28-12-3.1 shall govern. |
5 | SECTION 2. Sections 28-14-19 and 28-14-19.2 of the General Laws in Chapter 28-14 |
6 | entitled "Payment of Wages" are hereby amended to read as follows: |
7 | 28-14-19. Enforcement powers and duties of director of labor and training. |
8 | (a) It shall be the duty of the director to insure ensure compliance with the provisions of |
9 | this chapter 28-14 and 28-12. The director or his or her designee may investigate any violations |
10 | thereof, institute or cause to be instituted actions for the collection of wages and institute action |
11 | for penalties or other relief as provided for within and pursuant to those chapters. The director or |
12 | his or her authorized representatives are empowered to hold hearings and he or she shall |
13 | cooperate with any employee in the enforcement of a claim against his or her employer in any |
14 | case whenever, in his or her opinion, the claim is just and valid. |
15 | (b) Upon receipt of a complaint or conducting an inspection under applicable law, the |
16 | director or his or her appropriate departmental designee is authorized to investigate to determine |
17 | compliance with the chapters 28-12 and/or 28-14. |
18 | (c) With respect to all complaints deemed just and valid, the director or his or her |
19 | designee shall order a hearing thereon at a time and place to be specified, and shall give notice |
20 | thereof, together with a copy of the complaint or the purpose thereof, or a statement of the facts |
21 | disclosed upon investigation, which notice shall be served personally or by mail on any person, |
22 | business, corporation, or entity of any kind affected thereby. The hearing shall be scheduled |
23 | within thirty (30) days of service of a formal complaint determination that the claim is just and |
24 | valid as provided herein. The person, business, corporation, or entity shall have an opportunity to |
25 | be heard in respect to the matters complained of at the time and place specified in the notice. The |
26 | hearing shall be conducted by the director or his or her designee. The hearing officer in the |
27 | hearing shall be deemed to be acting in a judicial capacity, and shall have the right to issue |
28 | subpoenas, administer oaths, and examine witnesses. The enforcement of a subpoena issued |
29 | under this section shall be regulated by Rhode Island civil practice law and rules. The hearing |
30 | shall be expeditiously conducted and upon such hearing the hearing officer shall determine the |
31 | issues raised thereon and shall make a determination and enter an order within thirty (30) days of |
32 | the close of the hearing, and forthwith serve a copy of the order, with a notice of the filing |
33 | thereof, upon the parties to the proceeding, personally or by mail. The order shall dismiss the |
34 | complaint or direct payment of any wages and/or benefits found to be due and/or award such |
| LC001405 - Page 4 of 7 |
1 | other appropriate relief or penalties authorized under chapter 28-12 and/or 28-14, and the order |
2 | may direct payment of reasonable attorneys' fees and costs to the complaining party. Interest at |
3 | the rate of twelve percent (12%) per annum shall be awarded in the order from the date of the |
4 | nonpayment to the date of payment. |
5 | (d) The order shall also require payment of a further sum as a civil penalty in an amount |
6 | up to two (2) three (3) times the total wages and/or benefits found to be due, exclusive of interest, |
7 | which shall be shared equally between the department and the aggrieved party. In determining the |
8 | amount of any penalty to impose, the director or his or her designee shall consider the size of the |
9 | employer's business, the good faith of the employer, the gravity of the violation, the previous |
10 | violations and whether or not the violation was an innocent mistake or willful. |
11 | (e) The director may institute any action to recover unpaid wages or other compensation |
12 | or obtain relief as provided under this section with or without the consent of the employee or |
13 | employees affected. |
14 | (f) No agreement between the employee and employer to work for less than the |
15 | applicable wage and/or benefit rate or to otherwise work under and/or conditions in violation of |
16 | applicable law is a defense to an action brought pursuant to this section. |
17 | (g) The director shall notify the contractors' registration board of any order issued or any |
18 | determination hereunder that an employer has violated chapters 28-12, 28-14 and/or 37-13. The |
19 | director shall notify the tax administrator of any determination hereunder that may affect liability |
20 | for an employer's payment of wages and/or payroll taxes. |
21 | 28-14-19.2. Private right of action to collect wages or benefits and for equitable |
22 | relief. |
23 | (a) Any employee or former employee, or any organization representing such an |
24 | employee or former employee aggrieved by the failure to pay wages and/or benefits or |
25 | misclassification in violation of chapters 28-12 and/or 28-14 may file a civil action in any court of |
26 | competent jurisdiction to obtain relief. An aggrieved party shall be entitled to recover any unpaid |
27 | wages and/or benefits, compensatory damages, and liquidated damages in an amount up to two |
28 | (2) times the amount of unpaid wages and/or benefits owed, as well as an award of appropriate |
29 | equitable relief, including reinstatement of employment, fringe benefits and seniority rights, and |
30 | reasonable attorneys' fees and costs, and/or such other appropriate relief or penalties authorized |
31 | under chapters 28-12 and/or 28-14. In determining the amount of any penalty imposed under this |
32 | section, consideration shall be given to the size of the employer's business, the good faith of the |
33 | employer, the gravity of the violation, the history of previous violations, and whether or not the |
34 | violation was an innocent mistake or willful. Any unpaid fringe benefit contributions owed |
| LC001405 - Page 5 of 7 |
1 | pursuant to this section in any form shall be paid to the appropriate benefit fund: however, in the |
2 | absence of an appropriate fund, the benefit shall be paid directly to the aggrieved employee. |
3 | (b) An action instituted pursuant to this section may be brought by one or more |
4 | employees or former employees individually and/or on behalf of other employees similarly |
5 | situated. |
6 | (c) No agreement between the employee and employer to work for less than the |
7 | applicable wage and/or benefit rate or to otherwise work under terms and/or conditions in |
8 | violation of applicable law is a defense to an action brought pursuant to this section. |
9 | (d) An employer's responsibility and liability hereunder is solely to the employer's own |
10 | employees. |
11 | (e) A civil action filed under this section may be instituted instead of, but not in addition |
12 | to, the director of labor and training enforcement procedures authorized by the above referenced |
13 | chapters, provided the civil action is filed prior to the date the director of labor and training issues |
14 | notice of an administrative hearing. |
15 | (f) The filing of a civil action under this section shall not preclude the director of labor |
16 | and training from investigating the matter and/or referring the matter to the attorney general, |
17 | contractors ' registration board and/or the tax administrator. |
18 | (g) Any claim hereunder shall be forever barred unless commenced within three (3) six |
19 | (6) years after the cause of action accrued. |
20 | SECTION 3. This act shall take effect upon passage. |
======== | |
LC001405 | |
======== | |
| LC001405 - Page 6 of 7 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES | |
*** | |
1 | This act would gradually increase the hourly minimum wage from ten dollars and fifty |
2 | cents ($10.50) to fifteen dollars ($15.00) by July 1, 2023, as well as gradually increasing the |
3 | hourly minimum wage for employees receiving gratuities from three dollars and eighty-nine cents |
4 | ($3.89) an hour to fifteen dollars ($15.00) an hour by January 1, 2027. Increases subsequent to |
5 | those dates would be tied in to the consumer price index for urban wage earners and clerical |
6 | workers (CPI-W). |
7 | This act would take effect upon passage. |
======== | |
LC001405 | |
======== | |
| LC001405 - Page 7 of 7 |