The bill amends Section 28-12-4.3 of the General Laws in Chapter 28-12, titled "Minimum Wages," to introduce new exemptions and modify existing ones regarding overtime pay for salaried employees in executive, administrative, or professional capacities. The bill specifies that employees of summer camps, police officers, and certain state employees can opt for compensatory time off instead of overtime pay.

It establishes a new structure for determining overtime eligibility based on salary thresholds that will vary depending on the size of the employer and the year. Specifically, from January 1, 2026, small employers (with 50 or fewer employees) must pay overtime if salaries fall below one and one-half times the minimum wage, while larger employers (with more than 50 employees) must pay if salaries fall below two times the minimum wage.

The bill also removes previous exemptions for salaried employees in executive, administrative, or professional roles, replacing them with a phased approach to salary thresholds that will increase over time. Starting in 2027, the threshold for small employers will be set at two and one-half times the minimum wage, while larger employers will also adhere to this standard.

The changes aim to expand overtime eligibility for more employees, ensuring that those who work beyond 40 hours a week are compensated fairly based on their salary relative to the minimum wage. The act will take effect upon passage.

Statutes affected:
5678: 28-12-4.3