2020 -- H 7570

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LC004395

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - WAGES

     

     Introduced By: Representatives Ranglin-Vassell, Diaz, Ajello, Alzate, and Carson

     Date Introduced: February 13, 2020

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

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

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

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     28-12-3. Minimum wages.

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

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

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

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

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cents ($6.75) per hour.

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

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($7.10) per hour.

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

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($7.40) per hour.

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

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cents ($7.75) per hour.

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

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

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

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($9.60) per hour.

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     (i) Commencing January 1, 2018, the minimum wage is ten dollars and ten cents ($10.10)

 

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per hour.

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     (j) Commencing January 1, 2019, the minimum wage is ten dollars and fifty cents

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($10.50) per hour.

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     (k) Commencing July 1, 2020, the minimum wage is eleven dollars and twenty-five cents

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($11.25) per hour.

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     (l) Commencing January 1, 2021, the minimum wage is twelve dollars ($12.00) per hour.

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     (m) Commencing January 1, 2022, the minimum wage is thirteen dollars ($13.00) per

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hour.

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     (n) Commencing January 1, 2023, the minimum wage is fourteen dollars ($14.00) per

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hour.

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     (o) Commencing January 1, 2024, the minimum wage is fifteen dollars ($15.00) per hour.

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     (p) Commencing on January 1, 2025, and on each January 1 thereafter, the minimum

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

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

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

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

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

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

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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.; provided further, that commencing

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July 1, 2020, the cash wage shall increase by one dollar and eleven cents ($1.11) to an amount not

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less than five dollars ($5.00) per hour; provided further, that commencing January 1, 2021 the

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cash wage shall increase by one dollar and fifty cents ($1.50) to an amount not less than six

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dollars and fifty cents ($6.50) per hour; provided further, that commencing on January 1, 2022,

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the cash wage shall increase by one dollar and fifty cents ($1.50) to an amount not less than eight

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dollars ($8.00) per hour; provided further, that commencing January 1, 2023, the cash wage shall

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increase by one dollar and fifty cents ($1.50) to an amount not less than nine dollars and fifty

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cents ($9.50) per hour; provided further, that commencing January 1, 2024, the cash wage shall

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increase by one dollar and fifty cents ($1.50) to an amount not less than eleven dollars ($11.00)

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per hour; provided further, that commencing January 1, 2025, the cash wage shall increase by

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one dollar and fifty cents ($1.50) to an amount not less than twelve dollars and fifty cents

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($12.50) per hour; provided further, that commencing on January 1, 2026, the cash wage shall

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increase by one dollar and fifty cents ($1.50) to an amount not less than fourteen dollars ($14.00)

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per hour. Commencing on January 1, 2027, the cash wage shall be an amount not less than the

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

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

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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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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nonpayment to the date of payment.

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

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

 

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

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

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

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

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

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

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employees affected.

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     (f) 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 and/or conditions in violation of

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

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

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

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

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

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

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relief.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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situated.

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     (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

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

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

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employees.

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

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

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

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notice of an administrative hearing.

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

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

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contractors ' registration board and/or the tax administrator.

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

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(6) years after the cause of action accrued.

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     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

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     This act would increase the minimum wage by using an annual fixed amount until

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January 1, 2024, where it reaches to fifteen dollars per hour, then raised annually thereafter by

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using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It also

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raises the cash wage by using a similar scale.

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     This act would take effect upon passage.

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