Requires small employers with one to fifty (1-50) employees and large employers with fifty (50) or more employees to pay overtime wages to exempt workers if their salary exceeds varying multipliers of minimum wage for a forty (40) hour workweek.
Impact
This legislative change is expected to broaden the scope of employees eligible for overtime pay, allowing more workers, particularly in executive, administrative, and professional roles, to receive compensation for overtime hours worked. The bill is a significant departure from current regulations that do not require overtime payments for salaried executive employees unless their salary equates to less than the applicable minimum wage for a standard workweek. By modifying these criteria, HB 5678 aims to provide additional financial protections for workers, potentially improving their income stability and working conditions.
Summary
House Bill 5678, introduced in the Rhode Island General Assembly, seeks to amend existing labor laws related to minimum wage and overtime pay. The bill stipulates that small employers with one to fifty employees, as well as larger employers with fifty or more employees, will be required to pay overtime wages to certain exempt workers—specifically, those whose salaries fall below defined multipliers of the state's minimum wage for a forty-hour workweek. For example, starting in 2026, small employers must adhere to a threshold of one and a half times the minimum wage, while large employers will need to apply a multiplier of two times the minimum wage to determine overtime eligibility.
Contention
Discussion surrounding HB 5678 may highlight a debate between business interests and workers' rights advocates. Proponents of the bill argue that it will enhance financial protections for employees by ensuring fair compensation for their overtime work, a stance supported by labor unions and worker advocacy groups. Conversely, critics, particularly from the business sector, may express concerns that increased labor costs associated with overtime pay could hamper small businesses' operational flexibility and financial viability. These different perspectives underline the ongoing struggles to balance equitable labor practices with economic sustainability.
Repeals the law that allowed employers to pay some of their minor employees and employees who are full time students and not attained the age of nineteen (19), less than minimum hourly wages, requiring them to be paid a minimum hourly wage.
Amends the definition of "small employer" for purposes of the small employer health insurance availability act to mean a business employing less than one hundred (100) employees rather than fifty (50) employees.
Mandates that the work week be reduced to thirty-two hours and rate of pay for a thirty-two (32) hour workweek would remain the same as the rate of pay for forty hours.
Protects bullying/psychological abuse in workplace inflicted upon employees by employers/co-employees/provides civil remedies to affected employees/fines against employers/imprisonment/fines against co-employees.
Protects bullying/psychological abuse in workplace inflicted upon employees by employers/co-employees/provides civil remedies to affected employees/fines against employers/imprisonment/fines against co-employees.
Protects bullying/psychological abuse in workplace inflicted upon employees by employers/co-employees/provides civil remedies to affected employees/fines against employers/imprisonment/fines against co-employees.
Increases the taxable wage base upon which employees make contributions to the TDI and TCI funds, increases individual benefit rates, and creates an opt-in option for self-employed workers.
Requires employers to provide each employee of a warehouse distribution center, upon hire, with written description of quotas applicable to the employee within defined time periods and adverse employment action for failure to meet the quota.
Requires employer to furnish items and conditions of employment and a pay stub explaining how wages were calculated/reasons for deductions/allows the employee to file a court action against employer for violation.