Increases the minimum hourly wage commencing January 1, 2029, by an amount equal to the total percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) for the Northeast Region for the calendar year 2027.

Rhode Island Minimum Wage Adjustment Bill

This bill would adjust Rhode Island's minimum wage starting January 1, 2029, by tying it to inflation. Specifically, it would increase the minimum wage by the same percentage that prices rose in the Northeast region during 2027, as measured by a standard government inflation tracker called the Consumer Price Index for Urban Consumers (CPI-U). For example, if prices in the Northeast rose 3% in 2027, the minimum wage would increase by 3% on January 1, 2029.

The bill primarily affects low-wage workers and the businesses that employ them. Workers earning minimum wage would see their pay increase to help keep up with the rising cost of living. Employers — particularly in industries like retail, food service, and hospitality — would need to adjust their payroll budgets to account for the higher wage floor.

The practical effect is that the minimum wage adjustment would be based on real economic conditions from two years earlier, rather than being set by a fixed dollar amount decided by the legislature. This approach is sometimes called "indexing" the minimum wage to inflation.

Currently, the bill has been referred to the House Labor Committee and recommended for further study, meaning it has not yet advanced through the legislative process. No final vote has been taken, and the bill could still be revised, approved, or set aside before becoming law.