Rhode Island Minimum Wage 2026: $16.00 Now, $17.00 on January 1, 2027
Rhode Island minimum wage is $16.00 per hour in 2026 and rises to $17.00 on January 1, 2027. Tipped cash wage is $3.89, full-time students under 19 may be paid $14.40, and 14- and 15-year-olds $12.00. Increase history, coverage, overtime, and an employer checklist.
The Rhode Island minimum wage is $16.00 per hour as of January 1, 2026, and it is scheduled to rise to $17.00 on January 1, 2027. The state has raised the rate by a dollar every January since 2023, and the 2025 legislation that set the $16.00 and $17.00 steps is the fourth consecutive multi-year schedule Rhode Island has adopted. Tipped employees receive a cash wage of at least $3.89 plus tips. Full-time students under 19 working for nonprofits may be paid 90 percent of the minimum, or $14.40, and 14- and 15-year-olds working 24 hours or less a week may be paid 75 percent, or $12.00. There are no local minimum wages.
Reviewed September 2026
Figures come from the Rhode Island Department of Labor and Training's minimum wage page and the US Department of Labor's July 1, 2026 state and tipped wage tables. Both list $3.89 and $12.11 as the tipped cash wage and tip credit; the DOL table shows $3.89 as the cash wage, which is the long-standing Rhode Island figure. Confirm with the Department of Labor and Training before setting tipped pay.
Current Rhode Island Minimum Wage
Rhode Island's minimum wage is $16.00 per hour. The Department of Labor and Training confirms the rate "as of January 1, 2026" and lists the next step, "Commencing January 1, 2027: $17.00 per hour," under Rhode Island General Law section 28-12. The US Department of Labor table shows the same $16.00 and notes Rhode Island's separate Sunday and holiday premium rules.
At $16.00, Rhode Island now sits above neighboring Massachusetts ($15.00) and Connecticut ($16.94 is higher) and is among the highest state rates in New England. The Department of Labor and Training estimates around 50,000 Rhode Islanders earn the minimum wage.
Rhode Island Minimum Wage vs Federal Minimum Wage
| Measure | Rhode Island (2026) | Federal (2026) | Difference |
|---|---|---|---|
| Hourly minimum wage | $16.00 | $7.25 | $8.75 |
| Tipped cash wage | $3.89 | $2.13 | $1.76 |
| Maximum tip credit | $12.11 | $5.12 | $6.99 |
| Weekly pay at 40 hours | $640.00 | $290.00 | $350.00 |
| Annual pay at 2,080 hours | $33,280 | $15,080 | $18,200 |
| Next increase | $17.00 on January 1, 2027 | None scheduled |
The federal rate is irrelevant for almost every Rhode Island worker. The only place it matters is for workers who fall under a state exemption but are still covered by the federal Fair Labor Standards Act.
Tipped Minimum Wage in Rhode Island
Employers may pay tipped employees a cash wage of $3.89 per hour and take a tip credit of up to $12.11, provided the employee's cash wage plus tips reaches $16.00 for every hour worked. The DOL tipped table lists the $3.89 cash wage and $12.11 credit.
The $12.11 credit is one of the largest in the country, which makes the make-up obligation frequent. Rhode Island employers should reconcile tips each pay period and pay any shortfall in that period. Overtime for tipped employees is based on the full $16.00, so the overtime premium is $8.00 per hour regardless of tips. When the rate rises to $17.00 in 2027, the tip credit will grow to $13.11 unless the legislature changes the cash wage.
Rhode Island Minimum Wage Increase Schedule
Rhode Island has moved in $1.00 steps every January since 2023 under successive legislative schedules.
| Effective date | Rate | Basis |
|---|---|---|
| January 1, 2023 | $13.00 | 2021 law |
| January 1, 2024 | $14.00 | 2021 law |
| January 1, 2025 | $15.00 | 2021 law |
| January 1, 2026 | $16.00 | 2025 law |
| January 1, 2027 | $17.00 | 2025 law |
The Department of Labor and Training lists the 2023 to 2025 steps in its history and the 2027 step as scheduled. No indexing is in place after 2027, so any further increase would require new legislation. The student and youth rates move with the main rate because they are set as percentages: 90 percent for full-time students under 19 at nonprofits and 75 percent for 14- and 15-year-olds working 24 hours or less, so they become $15.30 and $12.75 in 2027.
Local Minimum Wages in Rhode Island
None. Rhode Island law reserves minimum wage setting to the state, so Providence, Warwick, Cranston, and every other municipality use the statewide rate. Across the border, Massachusetts is at $15.00 and Connecticut at $16.94 in 2026, so Rhode Island employers with staff in Massachusetts pay less for those hours and those with staff in Connecticut pay more.
Who Is Covered and Who Is Exempt
Rhode Island's minimum wage law covers most employees, with these main exceptions and special rates:
- Bona fide executive, administrative, and professional employees who meet the duties tests
- Full-time students under 19 employed by nonprofit religious, educational, library, or community service organizations, who may be paid 90 percent of the minimum ($14.40 in 2026)
- Employees aged 14 and 15 who work 24 hours or less in a week, who may be paid 75 percent ($12.00 in 2026); if they work more than 24 hours, the full rate applies to all hours
- Certain agricultural, domestic, and seasonal workers, and some employees of religious or nonprofit camps
The Department of Labor and Training lists the student rate as "90 percent of minimum wage, which is $14.40 per hour in 2026" and the youth rate as "$12 per hour in 2026." For classification rules, see exempt vs non-exempt employees.
Overtime and the Minimum Wage
Rhode Island requires overtime at 1.5 times the regular rate after 40 hours in a workweek. Rhode Island also has premium pay rules for work on Sundays and holidays in certain retail settings, which the Department of Labor and Training administers separately. A 45-hour week at $16.00 pays:
| Component | Hours | Rate | Pay |
|---|---|---|---|
| Regular | 40 | $16.00 | $640.00 |
| Overtime | 5 | $24.00 | $120.00 |
| Total | 45 | $760.00 |
See overtime pay laws by state and the overtime calculator.
What a Minimum Wage Worker Earns in Rhode Island
| Period | Hours | At $16.00 (2026) | At $17.00 (2027) |
|---|---|---|---|
| Week | 40 | $640.00 | $680.00 |
| Month | 173.33 | $2,773.28 | $2,946.61 |
| Year | 2,080 | $33,280 | $35,360 |
Gross figures before deductions. The salary to hourly calculator converts other rates; gross pay explains withholdings. Note that $35,360 in 2027 is still just below the $35,568 federal salary threshold for overtime exemption, so a minimum wage worker cannot be classified as exempt even at the higher rate.
Employer Compliance Checklist
- Pay $16.00 now and schedule the change to $17.00 for the first pay period of 2027.
- Pay tipped employees at least $3.89 in cash and reconcile to $16.00 every pay period.
- Apply student and youth rates narrowly. The 90 percent rate is only for full-time students under 19 at qualifying nonprofits; the 75 percent rate only for 14- and 15-year-olds working 24 hours or less.
- Check Sunday and holiday premium rules if you operate retail on those days.
- Pay overtime after 40 hours based on the full minimum for tipped staff.
- Keep hour records with a time card calculator or automated time tracking; the 24-hour youth threshold in particular requires accurate weekly totals.
Every other state's rate is in minimum wage by state.
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Common Minimum Wage Mistakes in Rhode Island
Rhode Island has changed its rate every January for four years, and the special rates are percentage-based, which produces these recurring errors:
- Running January payroll at the prior year's rate. The rate moved from $15.00 to $16.00 on January 1, 2026, and moves to $17.00 on January 1, 2027.
- Forgetting that the student and youth rates move too. They are 90 and 75 percent of the minimum, so they become $15.30 and $12.75 in 2027.
- Paying the 75 percent youth rate to a 14- or 15-year-old who worked more than 24 hours. Once the week exceeds 24 hours, the full rate applies to every hour that week.
- Applying the 90 percent student rate at a for-profit employer. It is limited to full-time students under 19 at qualifying nonprofit organizations.
- Reconciling tips at the wrong rate. The tip credit of $12.11 is large; cash wage plus tips must reach $16.00 for every hour.
- Overlooking Sunday and holiday premium rules for retail work, which sit outside the minimum wage statute but are enforced by the same department.
Frequently Asked Questions
What is the minimum wage in Rhode Island in 2026?
$16.00 per hour, effective January 1, 2026.
When does Rhode Island's minimum wage go to $17?
January 1, 2027, under Rhode Island General Law section 28-12.
What is the tipped minimum wage in Rhode Island?
$3.89 per hour in cash, with a tip credit of up to $12.11. Tips must bring the employee to $16.00 per hour.
Is there a student minimum wage in Rhode Island?
Yes. Full-time students under 19 working for qualifying nonprofits may be paid 90 percent of the minimum, $14.40 in 2026.
What is the minimum wage for 14- and 15-year-olds in Rhode Island?
$12.00 per hour in 2026 if they work 24 hours or less in a week. If they work more than 24 hours, the full $16.00 applies to all hours.
Does Providence have a higher minimum wage?
No. Rhode Island has no local minimum wages.
How much is Rhode Island minimum wage per year?
$33,280 before taxes at 2,080 hours in 2026, rising to $35,360 in 2027.
Does Rhode Island require overtime after 8 hours?
No. Overtime is owed after 40 hours in a workweek, with separate Sunday and holiday premium rules for some retail work.