The Rhode Island 2023 legislative session has concluded, with several bills awaiting final approval from Governor McKee. Key legislation that drew the attention of the National Federation of Independent Business (NFIB) featured various outcomes.
Significantly, efforts to increase the state minimum wage to $20 and above did not succeed this session. One proposal related to penalizing businesses for using automated checkout lanes was similarly unsuccessful. A newly enacted measure brings a benefit to businesses by creating a $50,000 tangible property tax exemption.
A “psychological bullying bill” passed by the Senate posed a risk of inviting frivolous lawsuits against employers. However, this did not proceed in the House. Similarly, a Senate bill that purported to protect workers’ free speech was perceived to curtail small business owners’ ability to discuss unionization effects but did not progress beyond the Senate.
On the environmental front, bills were passed that will require food service establishments to cease using polystyrene containers and plastic drink stirrers, alongside a mandate for larger retailers to include electric vehicle charging stations in new or significantly expanded parking areas utilizing any public funds.
Despite Governor McKee’s proposals for tax relief measures, including lowering the state sales tax, reducing the corporate minimum tax, and freezing the gas tax, these initiatives did not secure House and Senate backing.
Finally, legislation targeting employers for willful employee misclassification or wage theft has led to potential felony charges and increased fines. This bill was refined following feedback from NFIB and other groups, opting for the Fair Labor Standards Act’s definition of an employee over a more rigid test. Independent contractors will now need to file an annual designation form.
