Rhode Island to Increase Minimum Wage to $17 by 2027

News Summary

Rhode Island’s General Assembly is advancing House Bill 5029, which will raise the state’s minimum wage from $15 to $16 in 2026, and to $17 in 2027. While advocates commend the increase aimed at enhancing workers’ livelihoods, some business groups express concerns about rising labor costs and potential workforce reductions. The legislative session has also introduced additional worker protections and discussions surrounding mandatory paid breaks and tipping wages for hospitality workers, demonstrating a balancing act between supporting workers and ensuring business viability.

Rhode Island is set to implement significant changes to its minimum wage and worker protections as the General Assembly advances a new legislative bill. Under the provisions of House Bill 5029, the state’s minimum wage will rise from $15 per hour to $16 in 2026, followed by an increase to $17 in 2027. This move marks part of an ongoing effort to enhance the livelihoods of workers within the state.

The original proposal aimed for more aggressive annual increases that would have elevated the minimum wage to $20 per hour by the year 2030. However, due to negotiations led by House leadership, this ambitious target was modified to focus on a simpler two-year timeline. House Speaker K. Joseph Shekarchi cited the legislation’s focus on improving the purchasing power of workers, which is important not only for individual families but also for the broader economy.

While advocates praise the increase, some business groups, including the Rhode Island Business Coalition, have raised concerns. They argue that rising labor costs could potentially lead employers to reduce their workforce or adopt greater automation. This sentiment reflects a long-standing anxiety over the balance between enhancing worker wages and maintaining viable business operations.

Since 2021, Rhode Island has been incrementally raising its minimum wage as part of a tiered plan that first set the wage at $15. Additionally, the recent legislative session has seen other labor-friendly actions taken by the Senate, including the passage of the Workplace Psychological Safety Act and the establishment of a broader definition of “employee.” These developments expand labor protections for academic workers and others across various sectors.

Discussions during the Senate Labor Committee meetings have also examined the implementation of mandatory paid breaks for workers facing extreme temperatures and legislation aimed at reinstating longevity payments for state employees, allowing them to negotiate these benefits in future contracts.

Certain legislative proposals have specifically addressed working conditions, such as proposals mandating water breaks and ensuring adequate working environments during extreme weather conditions. Graduate students at Brown University have taken the initiative to advocate for stronger capacity to collectively bargain amid evolving threats to their labor rights.

Another topic of substantial discussion has focused on the tipping wage for hospitality workers, which has not changed since 2017 and currently stands at $3.89. Proposals are under consideration that would gradually increase this rate to better align it with the state’s overall wage increases.

To support fair wages for tipped employees, the Rhode Island Department of Labor enforces regulations requiring employers to make up the difference for tipped workers whose combined tips and hourly wage do not meet the standard minimum wage. This regulation is aimed at protecting these employees from income instability as the minimum wage rises.

The recent legislative sessions have demonstrated considerable support for gradual increases in the minimum wage in Rhode Island. However, ongoing discussions indicate that the effects on small businesses remain a critical consideration, ensuring that policy changes reflect both the needs of the workers and the capabilities of employers across the state.

Deeper Dive: News & Info About This Topic

• Rhode Island Current: Minimum Wage Hike Bills Draw Maximum Crowds to R.I. State House
• Providence Journal: Rhode Island’s Minimum Wage is $15 in 2025 and These Jobs are Covered
• GoLocalProv: New Bill Introduced to Raise Rhode Island Minimum Wage to $20 by 2030
• Encyclopedia Britannica: Minimum Wage
• Turn to 10: Should Rhode Island Tipped Workers Get a Raise?
• Google Scholar: Rhode Island Minimum Wage Laws