Commencing January 1, 2027, this act would increase the minimum wage for employees receiving gratuities, from the current three dollars and eighty-nine cents ($3.89) to six dollars and seventy-five cents ($6.75) per hour.

Rhode Island Tipped Minimum Wage Increase

This bill would raise the minimum hourly wage that employers are required to pay workers who regularly receive tips — such as restaurant servers, bartenders, and other tipped employees. Starting January 1, 2027, the minimum cash wage for these workers would increase from $3.89 per hour to $6.75 per hour. This is separate from Rhode Island's standard minimum wage, which applies to non-tipped workers.

Currently, Rhode Island law allows employers to pay tipped workers a lower base hourly rate, with the assumption that tips from customers will make up the difference. This arrangement is sometimes called a "tipped minimum wage" or "tip credit." Under this bill, employers would still be allowed to pay tipped workers less than the standard minimum wage, but the required base pay would jump by nearly $2.86 per hour — roughly a 74% increase in the cash wage floor.

This bill primarily affects tipped workers in industries like restaurants, hospitality, and personal services, as well as the businesses that employ them. Workers would be guaranteed more baseline income from their employer regardless of tip amounts on any given shift. Employers, particularly small restaurants and service businesses, would face higher direct labor costs. The bill has been introduced and referred to the Senate Labor and Gaming Committee, where it will be reviewed before any further action is taken.