The Rhode Island House and Senate concluded their legislative activities for 2023, leaving several bills pending Governor McKee’s approval. The National Federation of Independent Business (NFIB) highlighted key legislation from this session.
On the positive side, proposals to raise the state minimum wage to $20 or more did not pass. This included measures that would have penalized businesses using automated checkout lanes. A new law was enacted providing a $50,000 tangible property tax exemption. Additionally, while the Senate approved a “psychological bullying bill” that could have led to lawsuits against employers, it did not advance in the House. Similarly, a Senate-approved bill restricting small business owners’ free speech regarding unionization was not considered by the House.
However, lawmakers voted to ban polystyrene containers and plastic drink stirrers in food service establishments. Larger retailers will be required to include electric vehicle charging stations in new or expanded parking lots receiving public funding. Governor McKee’s proposals for tax relief—lowering sales tax, reducing corporate taxes, and freezing gas taxes—did not receive support from legislative leaders.
Employers found guilty of intentional misclassification or wage theft will face felony charges and higher fines under a revised bill addressing concerns from NFIB and other business groups about penalizing unintentional errors or legitimate disputes. The Fair Labor Standards Act will now define employees instead of a stricter Massachusetts-like test. Independent contractors must file an annual designation form.
