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Sunday, March 9, 2025

Rhode Island considers raising minimum wage; small businesses voice concerns

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Julianna Rauf Grassroots Manager | LinkedIn

Julianna Rauf Grassroots Manager | LinkedIn

The Rhode Island House and Senate Labor Committees recently heard testimony on proposed bills to increase the state's minimum wage. Currently set at $15 per hour, some proposals suggest raising it to $20, while others propose an increase to $22 per hour. Additionally, there are bills focused on increasing the tipped wage for hospitality workers. The National Federation of Independent Business (NFIB) expressed opposition to these legislative efforts.

According to the NFIB, small businesses would be most affected by such wage increases due to their limited capacity to manage higher labor costs. This could lead to increased prices for consumers and reduced working hours for employees. Furthermore, employers might need to reduce their workforce, worsening existing labor shortages.

Rhode Island remains the only state with premium Sunday and holiday pay following Massachusetts' decision in 2023 to eliminate this "Blue Law." A bill aimed at phasing out this outdated practice has been filed with support from the NFIB.

Labor advocates argue that many Rhode Islanders back initiatives to raise the minimum wage and maintain premium pay provisions. However, they emphasize the importance of business owners voicing their opposition during this legislative session.

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