2023 -- H 5590

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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 Felix, Morales, McNamara, Kazarian, Kislak, Potter,
Alzate, Batista, Henries, and Cruz

     Date Introduced: February 15, 2023

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. 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; provided further, that commencing January 1, 2024,

the cash wage shall increase by three dollars and six cents ($3.06) to an amount not less than six

dollars and ninety-five cents ($6.95) per hour; commencing January 1, 2025, the cash wage shall

increase by two dollars ($2.00) to an amount not less than eight dollars and ninety-five cents ($8.95)

per hour; commencing January 1, 2026, the cash wage shall increase by two dollars ($2.00) to an

amount not less than ten dollars and ninety-five cents ($10.95) per hour commencing; January 1,

2027, the cash wage shall increase by two dollars ($2.00) to an amount not less than twelve dollars

and ninety-five cents ($12.95) per hour; commencing January 1, 2028, the cash wage shall increase

by two dollars ($2.00) to an amount not less than fourteen dollars and ninety-five cents ($14.95)

per hour; commencing January 1, 2029, the cash wage shall be no less than the minimum wage

established pursuant to § 28-12-3.

     (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. 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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     Commencing January 1, 2024, this act would gradually increase the minimum wage for

employees receiving gratuities from the current three dollars and eighty-nine cents ($3.89) to

fourteen dollars and ninety-five cents ($14.95) by January 1, 2028 and on January 1, 2029 the

minimum wage for employees receiving gratuities shall be no less than the minimum wage

established by the minimum wage law.

     This act would take effect upon passage.

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