Rhode Island MINIMUM WAGES

Rhode Island State Minimum Wage for 2025

On January 1, 2025, Rhode Island’s minimum wage rose to $15.00 per hour. This is a $1.00 increase from the previous rates of 14.00 per hour for 2024.

The wage rate is adjusted according to state guidelines and impacts various industries and roles across Rhode Island. Non-exempt employees are also entitled to overtime pay, set at 1.5 times the regular hourly rate, for hours worked beyond 40 in a workweek. 

Furthermore, anyone younger than 19 years who is a full-time student and working for not-for-profit organizations such as religious, educational, library or community service-type jobs is eligible for 90% of the minimum wage ($13.50 per hour).  

Younger employees of 14 and 15 years old, who have not worked more than 24 hours per week are eligible for 75% of the minimum wage ($11.25 per hour). 

Tipped minimum wage rates remains constant across the state at $3.89 per hour. Employers should ensure their workers’ total earnings equals to or exceeds the minimum wage rate at $15.00 per hour. Similarly, the maximum tip credit allowed is $11.11 per hour.

Minimum Wages in Rhode Island Cities

The non-tipped minimum wage of $15.00 per hour and the tipped minimum wage of $3.89 per hour applies across all the cities of Rhode Island. Here is a table with the minimum wage rates of the top 30 cities in Rhode Island: 

Threshold For Employees Exempt

The Fair Labor Standards Act (FLSA) establishes classifications for employees, impacting how minimum wage and overtime requirements apply. 

• Non-exempt employees in Rhode Island must earn at least the state minimum wage of $14.00 per hour. For any hours beyond 40 per week, they must be compensated at the overtime rate. 

• Exempt employees are salaried employees, typically in executive, administrative, or professional roles, and must earn a minimum annual salary in Rhode Island for 2024 to qualify for exempt status. 

The current threshold for exempt employees is a minimum salary of $1,128 per week ($58,656 annually). The previous threshold was $844 per week ($43,888 annually) in 2024.

If an exempt employee’s weekly salary falls below the threshold, Rhode Island employers must either: 

• Raise the salary to meet the $58,656 annual minimum for exempt status, or 

• Reclassify the employee as non-exempt and pay them hourly, including overtime as required. 

Historical Data of Rhode Island Minimum Wage 

The minimum wage rise in Rhode Island has been gradual to fit the economic and social change within the country. When it was instituted at the rate of $0.75 per hour in 1947, the dollar increased incrementally over the years. 

In those levels, Rhode Island became only one of a few states with minimum wages above the rest of the USA. Progressing into the 1980s and 1990s, changes led to increases incrementally, bringing the rate up to $4.45 and later up to $5.45, a sign of inflationary rates on the climb. 

The changes in the 21st century was much more consequential and reached $10.50 by 2019. Recently, Rhode Island set itself on a pathway toward an eventual $15 minimum wage and made annual increases to take the state there by 2025. 

Here is a table showing the changes witnessed in the minimum wage rates between 1968 and 2023: 

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions from Minimum Wage in Rhode Island 

The key categories of employees or workers exempted from the minimum wage rate in Rhode Island apart from salaried employees are: 

• Full-time students: Students under 19 working in nonprofit organizations earn 90% of the minimum wage. 
• Minors (14-15 Years Old): Minors working under 24 hours per week earn 75% of minimum wage; if they exceed 24 hours, the full minimum wage applies. 
• Domestic and federal service: Workers in private homes or certain nonprofits (without traditional employer-employee relationships) are exempt. 
• Family employees: Individuals employed by family members, including minor children, are exempt from minimum wage. 
• Seasonal resort workers: Employees at seasonal resorts (open less than 6 months) and organized camps (operating fewer than 7 months) are exempt. 
• Tipped employees: In the restaurant and hotel industries, employers can count $3.89/hour of tips toward minimum wage requirements. 

Additional Exemptions for Overtime 

Other roles exempt from overtime provisions include certain commission-based sales roles, transportation workers, and domestic workers who may not fall under standard wage rules, according to the state’s labor laws.