The bill amends Section 28-12-5 of the General Laws in Chapter 28-12 entitled "Minimum Wages" to address the minimum wage for employees who customarily receive gratuities as part of their income. The bill specifies a series of incremental increases to the cash wage for tipped employees, starting from January 1, 2025, with an increase of three dollars and six cents ($3.06) to a new minimum of six dollars and ninety-five cents ($6.95) per hour. Subsequent annual increases of two dollars ($2.00) are set to occur each January 1st until 2029, ultimately reaching fourteen dollars and ninety-five cents ($14.95) per hour. By January 1, 2030, the cash wage for tipped employees will be no less than the general minimum wage established by § 28-12-3, without consideration of gratuities.

The bill also outlines the employer's obligations to provide substantial evidence when deducting gratuities from the minimum wage and the right of employees to a hearing on the deduction amount. It addresses the wage conditions for full-time students under nineteen working for certain non-profit organizations, stating they must be paid at least ninety percent (90%) of the minimum wage. The act is set to take effect upon passage, indicating that these changes will be implemented immediately once the bill is enacted.

Statutes affected:
7531: 28-12-5