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. Under current law, these employees are exempt from overtime pay unless their salary falls below the state's minimum wage when calculated on an hourly basis. The new provisions establish a tiered system for overtime eligibility based on the size of the employer and the employee's salary relative to the minimum wage.

Specifically, the bill outlines different thresholds for overtime pay based on employer size and the year. From January 1, 2026, small employers (1-50 employees) must pay overtime if salaries fall below one and one-half times the minimum wage, while large employers (more than 50 employees) must pay if salaries fall below two times the minimum wage. Additionally, starting January 1, 2027, the threshold for small employers will increase to two times the minimum wage, and for large employers, it will increase to two and one-half times the minimum wage. The act aims to expand overtime eligibility for more employees, thereby increasing their rights to compensation for hours worked beyond the standard 40-hour workweek. The act will take effect upon passage.

Statutes affected:
589: 28-12-4.3