Rhode Island is among the states that regulate the minimum wage for workers, and discussions have been ongoing about increasing it. As the state prepares for minimum wage increments, workers and employers must understand current minimum wage laws and potential changes. This article explains Rhode Island’s minimum wage laws, federal minimum wage, and history.<\/p>
Rhode Island’s minimum wage has seen a series of increases in recent years, intending to reach $15 per hour by 2025. The minimum wage in Rhode Island is $13.00 per hour currently. However, the minimum wage is expected to increase to $14 per hour in 2024 and $15 per hour in 2025.<\/p>
In addition to Rhode Island-specific minimum wage exemptions, the Federal Fair Labor Standards Act defines special minimum wage rates applicable to certain types of workers, such as:<\/p>
Rhode Island’s minimum wage increase is a result of legislation passed in 2021. The minimum wage applies to most employees in Rhode Island, with limited exceptions, including tipped employees, some student workers, and other exempt occupations.<\/p>
The gradual increase in Rhode Island’s minimum wage is part of a broader trend in the United States, as many states have been moving toward a $15 minimum wage. Rhode Island is joining nearby Massachusetts and Connecticut in reaching this threshold. The increase in the minimum wage is expected to impact 70,000 employees by 2022 and 140,000 by 2025.<\/p>
Employers in Rhode Island must display an approved Rhode Island minimum wage poster in a prominent place to inform employees about the minimum wage and their worker’s rights under Rhode Island labor law. <\/p>
For any concerns or questions about the Rhode Island minimum wage in 2023 and the laws, rules, and regulations, you can contact the Rhode Island Department of Labor and Training via their website.<\/p>
The Rhode Island state minimum wage has experienced a series of increases in recent years. In January 2023, the minimum wage increased by 75 cents, from $12.25 to $13.00 per hour. In 2021 the minimum wage was $11.50, and in 2022, it rose to $12.25 an hour. The legislation does not include any future scheduled increases, and the following minimum wage increase is set for 2024 to $14 an hour and in 2025 to $15 an hour.<\/p>
The Rhode Island Department of Labor and Training enforces the Rhode Island state minimum wage of $13.00 per hour. <\/p>
The federal minimum wage in the United States is $7.25 per hour for covered, nonexempt employees. This rate has been in effect since July 2009, and it is the minimum hourly pay that any non-exempt worker in the United States can be paid for their work.<\/p>
There are some exceptions and exemptions to the federal minimum wage. For example, tipped labor can be paid a minimum of $2.13 per hour as long as the hourly wage plus tip income equals at least the minimum wage. Unless a higher state minimum exists, people under 20 may be paid $4.25 an hour for the first 90 days of employment.<\/p>
Employees receive the highest applicable minimum wage in a given area, the federal or state minimum. Many states and cities have minimum wage laws, and some have higher rates than the federal minimum wage. <\/p>
In addition to the federal minimum wage, special minimum wage rates apply to certain types of workers. For instance, federal law allows employers to pay a training wage of $4.25 per hour for new employees who are under 20 years of age for the first 90 days of employment. Full-time high school or college students working part-time may be paid 85% of the federal minimum wage (as little as $6.16 per hour) for up to 20 hours per week at certain employers, such as university work-study programs.<\/p>
Currently, only three states have a $15 minimum wage: Washington ($15.74), California ($15.50), and Massachusetts ($15). By 2026, another eight states are set to join the $15 club: Delaware, Florida, Illinois, Maryland, New Jersey, Rhode Island, Virginia, and Nebraska. Hawaii will reach $15 by 2028.<\/p>
Rhode Island’s minimum wage is notably less than $15 an hour. However, it is scheduled to increase to $15 an hour by 2025. The minimum wage in Rhode Island is $13 an hour and will increase to $14 an hour in 2024. By 2025, the minimum wage will reach $15 an hour.<\/p>
Washington, D.C., has the highest minimum wage, with a minimum wage of $16.10 per hour. Washington, D.C., is not a state but a district, so the state with the highest minimum wage among states is Washington, with a minimum wage of $14.49 per hour. However, some cities and counties within states have higher minimum wages than the state minimum. For example, Emeryville, CA, has a minimum wage of $17.13, which is anticipated to increase to $17.68 this year.<\/p>
The top 10 states with the highest minimum wages are as follows:<\/p>
However, these minimum wages may be subject to change as states have different schedules for increasing their minimum wages.<\/p>
The minimum wage varies across the 50 states in the United States. The state with the highest minimum wage is California, at $15.50 per hour. If Washington, D.C., were a state, it would have the highest minimum wage at $16.10.<\/p>
The following states have a minimum wage of $15 per hour or above: Washington, California, Massachusetts, and Connecticut. Thirteen states will see their minimum wages increase to $15 per hour and above in 2023 and beyond.<\/p>
Georgia and Wyoming have the lowest minimum wages of $5.15 per hour. However, if you’re an employer in either of these states, you must pay the $7.25 per hour minimum wage for employees subject to the Fair Labor Standards Act (FLSA). Five states have no minimum wage laws, so they automatically follow the federal rate. They include Alabama, Louisiana, Mississippi, South Carolina, and Tennessee.<\/p>
In Nevada, the minimum wage for employees with qualifying health insurance that their employer does not offer is $11.25. Then, for employees with qualifying health insurance, the minimum wage is $10.25 per hour. The Nevada minimum wage increased to $11.25 for employees not offered qualifying health insurance. Then, $10.25 for employees offered health insurance. <\/p>
New Jersey has a minimum wage of $11.90 for seasonal and small employers who employ fewer than six people. In New York, the statewide minimum wage is $14.20 per hour. Then, in Long Island, Westchester, and New York City, the rate is $15.00 per hour.<\/p>
In Ohio, businesses with gross annual sales of less than $305,000 may pay a minimum wage of $7.25 per hour. In Oklahoma, businesses with gross annual sales of less than $100,000 may pay a minimum wage of $2.00 per hour. This also applies to those with fewer than ten employees.<\/p>
It is important to note that the minimum wage requirements may change over time due to legislative activities within individual states. You should consult the relevant state labor office for official information on the current minimum wage in your state.<\/p>
The livable wage, or the income required to cover basic family needs without reliance on outside assistance, is important to understand. Basic needs include food, housing, transportation, insurance, utilities, childcare, taxes, and inflation. However, other expenses, such as vacations, dining out, and savings, are typically not included. The living wage for an individual in Massachusetts is $19.91 an hour, or $41,416 a year. Of that, over $16,000 will be spent on housing alone. The living wage for a family of four is $29.19 an hour, or $121,414 a year, the nation’s highest. Of that, $19,000 will go to taxes, and over $22,000 will be spent on housing. Childcare will cost $31,879 a year, the highest cost in the nation.<\/p>
It’s important to note that the living wage calculation is based on the assumption that the sole provider is working full-time (2080 hours per year). Additionally, a person in Massachusetts needs about $3,792 monthly to live comfortably.<\/p>
The average salary in Massachusetts is $65,505. The middle class makes around $57,000 to $170,000 for two people with three people in the home, meaning $71,000 to $213,000, and a four-person household earning $88,000 to $263,000. 14.3% of households in Massachusetts are considered high-income households that make over $200,000 a year.<\/p>
Georgia and Wyoming have the lowest minimum wage in the United States at $5.15 per hour for employers exempt from the Fair Labor Standards Act. However, most companies use the federal minimum wage of $7.25. The federal minimum wage applies to any state without an established minimum wage.<\/p>
The lowest minimum wage a state can have is the federal minimum wage, which is currently $7.25 per hour. The following 21 states adopt the federal minimum wage or have no state minimum wage law: Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, Virginia, and Wisconsin. <\/p>
In Rhode Island, employees are considered full-time if they work at least 30 hours per week and do not earn less than 150% of the minimum wage. However, it’s important to note that the IRS sets guidelines for full-time employees of at least 30 hours per week or 130 hours per month, on average. <\/p>