What You Need to Know About Rhode Island’s Minimum Wage

What You Need to Know About Rhode Island’s Minimum Wage
Everything you need to know about the minimum wage in Rhode Island.
by Colleen Egan Nov 20, 2023 — 2 min read
What You Need to Know About Rhode Island’s Minimum Wage

Nothing in this article constitutes legal advice. Please consult a tax attorney or tax professional if you have questions about minimum wage compliance.

Small business owners in the Ocean State know how important it is to stay up to date on minimum wage regulations. You want to make sure you’re complying, of course. But staying aware of upcoming changes also lets you better plan for the future of your business.

That’s why we put together this quick guide with what you need to know about the minimum wage in Rhode Island in 2024.

What is the minimum wage in Rhode Island?

The minimum wage in Rhode Island is increasing to $14.00 per hour on Jan. 1, 2024, up from $13.00 per hour in 2023.

Rhode Island does have a set of exceptions for the state mandated hourly pay. Like many other states, Rhode Island allows employers to pay tipped employees a minimum cash wage of $3.89 per hour, with a maximum tip credit of $10.11 per hour. Here are some of the other exceptions to the $14 hourly pay rate and overtime pay rules, according to Rhode Island minimum wage laws:

Will the minimum wage change beyond 2024?

In May 2021 the Governor of Rhode Island signed an amendment to join other states in aiming for a $15.00 minimum wage by 2025. The amendment specifies yearly increases in the state mandated minimum wage until it reaches $15.00 in 2025.

Given the fact that the amendment only specifies how much the minimum wage in Rhode Island is to increase each year up until 2025, it is not yet certain how the hourly pay rate will change beyond this set date.

Minimum wage in Rhode Island

Date Minimum wage
January 1, 2022 $12.25
January 1, 2023 $13.00
January 1, 2024 $14.00
January 1, 2025 $15.00

How should small business owners prepare for changes to the minimum wage?

Rhode Island has joined a long list of states moving towards a $15.00 minimum wage within this decade. For this reason, it is important as a business owner to stay on top of these annual changes in state mandated hourly pay for employees. It’s a good idea to understand the federal minimum wage and discuss Rhode Island minimum wage laws with your accountant and lawyer to ensure that you remain in compliance.

Here are some other steps you can take to make sure your business is ready if the minimum wage in Rhode Island does increase again:

Colleen Egan
Colleen Egan writes for Square, where she covers everything from how aspiring entrepreneurs can turn their passion into a career to the best marketing strategies for small businesses who are ready to take their enterprise to the next level.


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