The bill amends Section 28-12-5 of the General Laws in Chapter 28-12, entitled "Minimum Wages," specifically addressing employees who receive gratuities as part of their income. The bill stipulates that employers must pay employees who customarily receive gratuities a minimum wage as provided by §§ 28-12-3 and 28-12-3.1, with an allowance for gratuities deducted from the hourly wage rate. The definition of "gratuities" is clarified as voluntary monetary compensation received directly or indirectly by the employee for services rendered.

The significant change introduced by the bill is the increase in the minimum cash wage for employees receiving gratuities. The bill mandates that starting January 1, 2025, the cash wage will increase by $2.86 to a new minimum of $6.75 per hour. This is a substantial increase from the previous minimum cash wage of $3.89 per hour. The bill also outlines the employer's obligation to provide substantial evidence when deducting gratuities from the minimum wage and ensures that employees are entitled to a hearing on the amount of deduction if desired. The act will take effect immediately upon passage.

Statutes affected:
2237: 28-12-5