2021 -- S 0545

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- TIPPED MINIMUM WAGE

     

     Introduced By: Senators Euer, Ciccone, Kallman, Valverde, DiMario, Lawson, Cano,
Murray, Sosnowski, and Goodwin

     Date Introduced: March 04, 2021

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 28-12-5 of the General Laws in Chapter 28-12 entitled "Minimum

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Wages" is hereby amended to read as follows:

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     28-12-5. Employees receiving gratuities.

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     (a) Every employer shall pay to each of his or her employees who are engaged in any work

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or employment in which gratuities have customarily and usually constituted a part of his or her

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weekly income, the rate as provided by §§ 28-12-3 and 28-12-3.1.

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     (b) Allowance for gratuities as part of the hourly wage rate for restaurants, hotels, and other

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industries, except taxicabs and limited public motor vehicles, shall be an amount equal to the

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applicable minimum rates as provided by §§ 28-12-3 and 28-12-3.1 less two dollars and eighty-

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nine cents ($2.89) per hour. "Gratuities" means voluntary monetary compensation received directly

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or indirectly by the employee for services rendered.

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     (c) Each employer desiring to deduct for gratuities as part of the minimum rates as provided

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in §§ 28-12-3 and 28-12-3.1 wages paid to an employee shall provide substantial evidence that the

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amount shall be set out in the formula in subsection (b) of this section; however, the cash wage

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shall not be less than two dollars and eighty-nine cents ($2.89) per hour; provided, however, that

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commencing January 1, 2016, the cash wage shall increase by fifty cents ($.50) to an amount not

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less than three dollars and thirty-nine cents ($3.39) per hour; provided further, that commencing

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January 1, 2017, the cash wage shall increase by fifty cents ($.50) to an amount not less than three

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dollars and eighty-nine cents ($3.89) per hour; provided further, that commencing January 1, 2022,

 

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the cash wage shall increase by three dollars and six cents ($3.06) to an amount not less than six

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dollars and ninety-five cents ($6.95) per hour; commencing January 1, 2023, the cash wage shall

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increase by two dollars ($2.00) to an amount not less than eight dollars and ninety-five cents ($8.95)

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per hour; commencing January 1, 2024, the cash wage shall increase by two dollars ($2.00) to an

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amount not less than ten dollars and ninety-five cents ($10.95) per hour commencing; January 1,

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2025, the cash wage shall increase by two dollars ($2.00) to an amount not less than twelve dollars

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and ninety-five cents ($12.95) per hour; commencing January 1, 2026, the cash wage shall increase

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by two dollars ($2.00) to an amount not less than fourteen dollars and ninety-five cents ($14.95)

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per hour; commencing January 1, 2027, the cash wage shall increase by two dollars ($2.00) to an

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amount not less than sixteen dollars and ninety-five cents ($16.95) per hour.

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     (d) The director of labor and training shall notify employers concerning what type of proof

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shall be accepted as substantial evidence for the purpose of this subsection. Employees involved

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shall be entitled to a hearing on the question of the amount of deduction if they so desire.

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     (e) In cases where wages are figured by the employer on an incentive basis in such a manner

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that an employee of reasonable average ability earns at least the minimum wage established by §§

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28-12-3 and 28-12-3.1, it shall be taken that the employer has complied with this statute. It shall be

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of no concern to the director of labor and training how the employer arrives at its wage scale so

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long as it is not unreasonable in its demands on the employee.

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     (f) Where, in the case of the employment of a full-time student who has not attained his or

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her nineteenth (19th) birthday engaged in the activities of a nonprofit association or corporation,

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whose aims and objectives are religious, educational, librarial, or community service in nature, the

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employer-employee relationship does exist, the employer shall pay to each such employee wages

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at a rate of not less than ninety percent (90%) of the minimum wage as specified in § 28-12-3. In

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case of any conflict between provisions of this section and those of § 28-12-3.1, the provisions of

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§ 28-12-3.1 shall govern.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- TIPPED MINIMUM WAGE

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     This act would gradually increase the tipped minimum wage from the current three dollars

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and eighty-nine cents ($3.89) to sixteen dollars and ninety-five cents ($16.95) over the course of

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five (5) years, between 2022 and 2027.

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     This act would take effect upon passage.

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