The bill amends Section 28-12-5 of the General Laws in Chapter 28-12, titled "Minimum Wages," to establish new wage requirements for employees who receive gratuities. The current cash wage for these employees, which is set at $3.89 per hour, will see a series of increases starting January 1, 2026, culminating in a minimum wage of $14.95 per hour by January 1, 2030. Specifically, the bill introduces a gradual increase in the cash wage, with increments of $3.06, $2.00, and further adjustments leading to a final requirement that, starting January 1, 2031, the cash wage must be no less than the minimum wage established by § 28-12-3.

Additionally, the bill clarifies the definition of "gratuities" and outlines the conditions under which employers can deduct gratuities from the minimum wage. It mandates that employers provide substantial evidence for any deductions and allows employees to request a hearing regarding these deductions. The bill also specifies that the director of labor and training will inform employers about acceptable proof for deductions, ensuring transparency and fairness in wage calculations for employees receiving gratuities. This act will take effect upon passage.

Statutes affected:
5507: 28-12-5