Intro to Rhode Island Labor Laws

The Rhode Island Department of Labor and Training (DLT) has updated its regulations for Sunday and holiday premium pay. The new rules also provide a clear definition for a "retail business"—an establishment primarily engaged in selling goods or services directly to the public. This change clarifies how businesses must calculate premium pay and eliminates the DLT's authority to grant new exemptions. Rhode Island employers should review their payroll practices with legal counsel to ensure compliance. If you have questions about configuring your payroll settings in the Justworks’ platform to reflect these requirements, please reach out to Justworks Support.

Rhode Island became the first state to enact workplace protections specifically for menopause-related conditions. The new law extends existing accommodation requirements for pregnancy and childbirth to include symptoms of menopause for employers with four or more employees. Employers must provide reasonable accommodations upon request unless it creates an undue hardship, cannot deny employment opportunities based on the need for such accommodations, and must update workplace notices and posters to reflect these new protections. Covered employers should review current policies and practices and update accordingly.

Rhode Island’s Temporary Caregiver Insurance (TCI) law has been amended to increase the amount of leave benefits available to eligible employees in coming years. Under TCI currently, employees can take six weeks of job and benefits-protected leave in a benefit year to care for a newborn, or newly adopted child, or to care for a family member with a serious health condition. Beginning January 1, 2025, employees will be entitled to seven weeks of leave, and beginning January 1, 2026, up to eight weeks of leave.

Rhode Island employers are prohibited from implementing mandatory “captive audience” meetings related to political, collective bargaining, or religious topics and prohibits any adverse employment action against those who refuse to attend such meetings or listen to related communications. The law defines political matters as elections, legislation, and union support, and provides a private right of action, allowing employees to sue for damages, back pay, reinstatement, injunctive relief, and attorneys’ fees if they are penalized for opting out. Employers should review  current policies and practices to limit captive audiences.

Rhode Island has introduced the Secure Choice Retirement Savings Program, requiring private employers with 5 or more employees to offer retirement plan coverage if they don’t already. Enrollment for employers will be free, and employees who are 18 and over will be automatically enrolled in a payroll-deduction Individual Retirement Account (IRA) with the option to opt out at any time. Employers with more than 100 employees must comply within one year, those with over 50 employees within two years, and all others within three years of the program’s launch. Customers who participate in Justworks’ 401k plans through Empower generally meet or exceed the requirements in states that have mandates for retirement savings plans.

On June 22, 2023, Governor Daniel McKee signed a bill into law which prohibits employers from requiring employees to sign nondisclosure or non-disparagement agreements regarding civil rights abuses as a condition of their employment. This new law safeguards an employee’s right to speak up about any potential civil rights violations or unlawful actions without fear of retaliation.