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 deletes the previous exemption for salaried employees in executive, administrative, or professional roles and replaces it with a new structure that sets thresholds for overtime eligibility based on the size of the employer and the employee's salary relative to the minimum wage. Specifically, through December 31, 2026, employees in these roles remain exempt unless their wages, if computed on an hourly basis, would violate the applicable minimum wage law.

Commencing January 1, 2027, 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. This phased approach continues with further adjustments in subsequent years, including two times the minimum wage for small employers in 2028 and two and one-half times for large employers in 2029. This change aims to expand overtime protections for more employees and will take effect upon passage of the bill.

Statutes affected:
7490: 28-12-4.3