Rhode Island 2023 2023 Regular Session

Rhode Island Senate Bill S1079 Amended / Bill

Filed 06/08/2023

                     
 
 
 
2023 -- S 1079 AS AMENDED 
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S T A T E O F R H O D E I S L A N D 
IN GENERAL ASSEMBLY 
JANUARY SESSION, A.D. 2023 
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A N   A C T 
RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES 
Introduced By: Senator Meghan E. Kallman 
Date Introduced: May 25, 2023 
Referred To: Senate Labor 
 
 
It is enacted by the General Assembly as follows: 
SECTION 1. Sections 28-14-17 and 28-14-19.1 of the General Laws in Chapter 28-14 1 
entitled "Payment of Wages" are hereby amended to read as follows: 2 
28-14-17. Penalty for violations. 3 
(a) Except as otherwise provided in this chapter, any Any employer who or that violates or 4 
fails to comply with any of the provisions of this chapter shall be guilty of a misdemeanor, and 5 
upon conviction of the misdemeanor, the employer shall be punished by a fine of not less than four 6 
hundred dollars ($400) for each separate offense, or by imprisonment of up to one year, or by both 7 
fine and imprisonment. Each day of failure to pay wages due an employee at the time specified in 8 
this chapter shall constitute a separate and distinct violation. 9 
(b) Any employer found guilty of violations of this chapter who or that does not pay wages 10 
and fines within thirty (30) days of a final decision and after notification by the department of labor 11 
and training, may have the employer’s business license revoked by the state of Rhode Island until 12 
the employer pays such wages and fines in full or enters into a payment agreement with which the 13 
employer stays in compliance. 14 
(c) Any employer who knowingly and willfully violates §§ 28-14-2, 28-14-3, 28-14-4, and 15 
28-14-6 shall be guilty of a felony if the value of the wages due to an employee exceeds one 16 
thousand five hundred dollars ($1,500) and upon plea or conviction, shall be subject to the 17 
following penalties: 18 
(i) If the value exceeds one thousand five hundred dollars ($1,500), but is less than five 19   
 
 
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thousand dollars ($5,000), by imprisonment for not more than three (3) years or by a fine of not 1 
more than twice the value of the wages, or both.  2 
(ii) If the value exceeds five thousand dollars ($5,000), but is less than ten thousand dollars 3 
($10,000), by imprisonment for not more than six (6) years or by a fine of not more than twice the 4 
value of the wages, or both.  5 
(iii) If the value exceeds ten thousand dollars ($10,000), by imprisonment for not more 6 
than ten (10) years or by a fine of not more than twice the value of the wages, or both. 7 
(d) Any employer who knowingly and willfully violates § 28-14-19.1 shall be subject to 8 
the following penalties upon plea or conviction: 9 
(1) In instances of a first offense of a knowing and willful violation of § 28-14-19.1, by 10 
imprisonment for not more than three (3) years or by a fine of not more than twice the value of the 11 
wages or ten thousand dollars ($10,000), whichever is greater, or both. 12 
(2) In instances of a second or subsequent offense of a knowing and willful violation of § 13 
28-14-19.1, by imprisonment for not more than five (5) years or a fine of not more than three (3) 14 
times the value of the wages or twenty thousand dollars ($20,000), whichever is greater, or both. 15 
28-14-19.1. Misclassification of employees. 16 
(a) The misclassification of a worker whether performing work as a natural person, 17 
business, corporation, or entity of any kind, as an independent contractor when the worker should 18 
be considered and paid as an employee shall be considered a violation of this chapter. 19 
(b) In addition to any other relief to which any department or an aggrieved party may be 20 
entitled for such a violation, the employer shall be liable for a civil penalty in an amount not less 21 
than one thousand five hundred dollars ($1,500) and not greater than three thousand dollars 22 
($3,000) for each misclassified employee for a first offense and up to five thousand dollars ($5,000) 23 
for each misclassified employee for any subsequent offense, which shall be shared equally between 24 
the department and the aggrieved party. 25 
(c) In determining the amount of any penalty imposed under this section, the director, or 26 
his or her designee, shall consider the size of the employer’s business; the good faith of the 27 
employer; the gravity of the violation; the history of previous violations; and whether or not the 28 
violation was an innocent mistake or willful. 29 
(d) A violation of this section may be adjudicated under § 28-14-19 and consolidated with 30 
any labor standards violation or under §§ 37-13-14.1 and 37-13-15 and consolidated with any 31 
prevailing wage violation. 32 
(e) A civil violation of this section may be brought or adjudicated by any division of the 33 
department of labor and training.  34   
 
 
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(f) The department shall notify the contractors’ registration board and the tax administrator 1 
of any violation of this section. 2 
SECTION 2. This act shall take effect upon passage. 3 
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EXPLANATION 
BY THE LEGISLATIVE COUNCIL 
OF 
A N   A C T 
RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES 
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This act would increase the criminal penalties for wage theft and employee 1 
misclassification. 2 
This act would take effect upon passage. 3 
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