2023 -- H 5902

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LC001272

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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 -- PAYMENT OF WAGES

     Introduced By: Representatives Craven, Caldwell, Bennett, and Morales

     Date Introduced: March 01, 2023

     Referred To: House Judiciary

     (Attorney General)

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 28-14-17 and 28-14-19.1 of the General Laws in Chapter 28-14

entitled "Payment of Wages" are hereby amended to read as follows:

     28-14-17. Penalty for violations.

     (a) Except as otherwise provided in this chapter, any Any employer who or that violates or

fails to comply with any of the provisions of this chapter shall be guilty of a misdemeanor, and

upon conviction of the misdemeanor, the employer shall be punished by a fine of not less than four

hundred dollars ($400) for each separate offense, or by imprisonment of up to one year, or by both

fine and imprisonment. Each day of failure to pay wages due an employee at the time specified in

this chapter shall constitute a separate and distinct violation.

     (b) Any employer found guilty of violations of this chapter who or that does not pay wages

and fines within thirty (30) days of a final decision and after notification by the department of labor

and training, may have the employer’s business license revoked by the state of Rhode Island until

the employer pays such wages and fines in full or enters into a payment agreement with which the

employer stays in compliance.

     (c) Any employer who knowingly and willfully violates §§ 28-14-2, 28-14-3, 28-14-4, and

28-14-6 shall be guilty of a felony if the value of the wages due to an employee exceeds one

thousand five hundred dollars ($1,500) and upon plea or conviction, shall be subject to the

following penalties:

     (i) If the value exceeds one thousand five hundred dollars ($1,500), but is less than five

thousand dollars ($5,000), by imprisonment for not more than three (3) years or by a fine of not

more than twice the value of the wages, or both.

     (ii) If the value exceeds five thousand dollars ($5,000), but is less than ten thousand dollars

($10,000), by imprisonment for not more than six (6) years or by a fine of not more than twice the

value of the wages, or both.

     (iii) If the value exceeds ten thousand dollars ($10,000), by imprisonment for not more

than ten (10) years or by a fine of not more than twice the value of the wages, or both.

     28-14-19.1. Misclassification of employees.

     (a) The misclassification of a worker whether performing work as a natural person,

business, corporation, or entity of any kind, as an independent contractor when the worker should

be considered and paid as an employee shall be considered a violation of this chapter.

     (b) In addition to any other relief to which any department or an aggrieved party may be

entitled for such a violation, the employer shall be liable for a civil penalty in an amount not less

than one thousand five hundred dollars ($1,500) and not greater than three thousand dollars

($3,000) for each misclassified employee for a first offense and up to five thousand dollars ($5,000)

for each misclassified employee for any subsequent offense, which shall be shared equally between

the department and the aggrieved party.

     (c) In determining the amount of any penalty imposed under this section, the director, or

his or her designee, shall consider the size of the employer’s business; the good faith of the

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

violation was an innocent mistake or willful.

     (d) A violation of this section may be adjudicated under § 28-14-19 and consolidated with

any labor standards violation or under §§ 37-13-14.1 and 37-13-15 and consolidated with any

prevailing wage violation.

     (e) A civil violation of this section may be brought or adjudicated by any division of the

department of labor and training. A criminal violation of this section may be brought by the attorney

general.

     (f) The department shall notify the contractors’ registration board and the tax administrator

of any violation of this section.

     (g) Any employer who knowingly and willfully violates this section shall be subject to the

following penalties upon plea or conviction:

     (1) In instances of a first offense of a knowing and willful violation of this section, by

imprisonment for not more than three (3) years or by a fine of not more than twice the value of the

wages or ten thousand dollars ($10,000), whichever is greater, or both.

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     (2) In instances of a second or subsequent offense of a knowing and willful violation of

this section, by imprisonment for not more than five (5) years or a fine of not more than three (3)

times the value of the wages or twenty thousand dollars ($20,000), whichever is greater, or both.

     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 -- PAYMENT OF WAGES

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     This act would increase the criminal penalties for wage theft and employee

misclassification.

     This act would take effect upon passage.

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