AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES

2026 Regular Session Introduced by Bob Britto and 9 co-sponsors

Rhode Island’s bill creates a phased minimum wage rising to $17 by 2027, then annual CPI-U-based increases (capped at 12%) starting 2028.

05/06/2026 Committee recommended measure be held for further study

Purpose and Intent

Proposed An Act relating to labor and labor relations – minimum wages.

Establishes a structured schedule of Rhode Island minimum wage increases through 2027, followed by a CPI-based adjustment starting January 1, 2028.

Aims to gradually raise the state minimum wage and tie future increases to inflation (CPI-U for the Northeast Region), with a cap of 12% to prevent excessive year-to-year changes.

Key Provisions and Changes

1) Schedule of Minimum Wage Increases (Phased Increments through 2027)

The bill updates or codifies a series of annual minimum wages beginning earlier years and continuing through 2027, with explicit dollar amounts for each year:

Existing and historical baseline increments prior to 2026 are listed, culminating in:
January 1, 2026: $16.00 per hour
January 1, 2027: $17.00 per hour

The schedule effectively stacks on the prior wage levels, culminating in $17.00 per hour by 2027.

2) CPI-U Based Adjustment (Starting 2028)

Beginning January 1, 2028, the minimum wage shall be increased by an amount equal to the total percentage increase in the U.S. Bureau of Labor Statistics CPI-U for the Northeast Region over the four previous fiscal years.

There is a statutory cap: annual increases cannot exceed 12%.

3) Effective Date

The act: “This act shall take effect upon passage.” This means the bill would become effective immediately upon enactment, with the CPI-based adjustment mechanism beginning in 2028.

4) Coverage and Applicability

Applies to every employer and each of the employer’s employees in Rhode Island, consistent with existing minimum wage laws.

Does not specify exemptions within this bill text beyond the general minimum wage framework; it follows Rhode Island’s standard approach to minimum wage coverage.

Who Would Be Affected

Employers in Rhode Island: Required to pay at least the specified minimum wages according to the schedule through 2027, and to adjust wages upward in 2028 and thereafter via the CPI-based mechanism.

Employees: Beneficiaries of gradual wage increases through 2027, and inflation-adjusted increases from 2028 onward (subject to the 12% cap, if triggered in any one year).

Payroll/HR and Compliance: Entities would need to track yearly minimum wage amounts and ensure payroll systems reflect changes, including the CPI-based adjustments starting in 2028.

Procedural and Timeline Aspects

Introduced: January 23, 2026.

Referred to: Senate Labor & Gaming Committee.

Schedule: Hearing/consideration listed for May 1–6, 2026 (per action history).

Final effect: If enacted, the act would immediately take effect upon passage; the CPI-based adjustment would kick in beginning January 1, 2028.

Notable Details

The bill provides explicit wage amounts for each year through 2027, ensuring a predictable pathway for employers and workers.

The CPI-U adjustment applies to the Northeast Region and uses the four fiscal-year period prior to the adjustment date.

Cap on annual CPI-based increases (12%) to prevent substantial year-to-year volatility.

If you’d like, I can convert these provisions into a concise one-page briefing for policymakers or draft FAQs for employers and workers.

Bill