The bill amends Section 28-12-4.3 of the General Laws in Chapter 28-12, titled "Minimum Wages," to introduce new provisions regarding overtime pay for salaried employees in executive, administrative, or professional capacities. The bill establishes a phased approach to salary thresholds for overtime eligibility based on the size of the employer and the year.

Under the new provisions, 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. This structure will continue to evolve, with the threshold for small employers increasing to two and one-half times the minimum wage starting January 1, 2027, and larger employers adhering to the same standard.

The bill also modifies existing exemptions for salaried employees in executive, administrative, or professional roles, removing previous criteria and replacing them with the new salary thresholds. 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:
589: 28-12-4.3