2023 -- H 5181

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES

     Introduced By: Representatives Sanchez, Morales, Stewart, Giraldo, Vella-Wilkinson,
Potter, Batista, Henries, Caldwell, and Slater

     Date Introduced: January 19, 2023

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 28-12-3.1 of the General Laws in Chapter 28-12 entitled "Minimum

Wages" is hereby repealed.

     28-12-3.1. Wages for minors.

     Every minor, fourteen (14) and fifteen (15) years of age shall be paid at a rate of not less

than seventy-five percent (75%) of the minimum wages as specified in § 28-12-3; provided, every

minor who works in excess of twenty-four (24) hours in any week shall be paid for all hours worked

in that week at the hourly rate provided by § 28-12-3 or § 28-12-5(e).

     SECTION 2. Section 28-12-5 of the General Laws in Chapter 28-12 entitled "Minimum

Wages" is hereby amended to read as follows:

     28-12-5. Employees receiving gratuities.

     (a) Every employer shall pay to each of the employer’s 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 as 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.

     (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 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 -- MINIMUM WAGES

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     This act would repeal the law that allowed employers to pay some of their minor employees

and employees who are full-time students and not attained the age of nineteen (19) less than

minimum hourly wages. The result of this repeal would require that all minors and all full-time

students be paid the minimum hourly wage.

     This act would take effect upon passage.

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