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RI Minimum Wage Increasing October 1st

September 29, 2020

The minimum wage for Rhode Island increases to $11.50 effective October 1, 2020. Here’s what you should know.

Attention Rhode Islanders…effective October 1, 2020, the Ocean State’s minimum wage is increasing to $11.50. Learn more about the change here.

2020 rates

Minimum wage: $11.50 per hour (up from $10.50 in 2019)

Tipped Employees: $3.89 per hour (unchanged from 2019)

Tip Credit: $7.61 (up from $6.61 in 2019)

What is the FICA tip credit?

The minimum wage allowable in RI for occupations earning tips is $3.89 per hour. As such, waiters, waitresses and bartenders can be paid that rate as long as their tips received brings them to the minimum wage of $11.50 per hour. If not, the employer must make up the shortage.

What about overtime pay?

Those who work in excess of 40 hours per work week are entitled under Federal and State law to receive payment of one and one half (1 ½) the regular wage rate. Overtime must be paid for all hours worked over 40 for multi-unit operations with similar ownership e (does not matter which location the employee worked).

For tipped employees, the 2020 overtime rate is as follows:

$11.50 x 1.5 = $17.25 Minus the tip credit of $7.61

= $9.64 per hour

For guidance on this increase, contact us.

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