State Law > Rhode Island > Rhode Island Wage Payment Law

Rhode Island Wage Payment Law

 

Rhode Island's law regarding wage payment is located in Title 28, Chapter 14 of the General Laws of Rhode Island.

  • 28-14-1 Payment of Wages–Definitions.
  • 28-14-2 Payment of wages — Form of payment — Establishment of regular paydays.
  • 28-14-2.1 Payment of Wages–Statement of earnings.
  • 28-14-2.2 Payment of Wages–Frequency of payment.
  • 28-14-3 Payment of Wages–Deduction and payment of union dues.
  • 28-14-3.1 Payment of Wages–Payroll deductions
  • 28-14-4. Payment on separation by employer.
  • 28-14-5 Payment of Wages–Payment in event of industrial dispute.
  • 28-14-6 Payment of Wages–Payment of wages of deceased employees.
  • 28-14-8 Payment of Wages–Payment of undisputed amounts in wage disputes.
  • 28-14-9 Payment of Wages–Effect of private agreements — Payment of bonuses.
  • 28-14-10 Payment of Wages–Wage deductions unaffected.
  • 28-14-10.1 Payment of Wages–Payment of wages directly to employee's account in financial institution.
  • 28-14-10.2 Payment of Wages–Deduction of premium for prepaid legal services.
  • 28-14-12. Employment records.
  • 28-14-18 Payment of Wages–Protection.
  • 28-14-18.1 Payment of Wages–Relief and damages.
  • 28-14-18.2 Payment of Wages–Reinstatement.
  • 28-14-24. Setoff of money owed by employee to employer.
  • 28-14-31. Wages upon return from lay-off.



28-14-1 Payment of Wages–Definitions.

Whenever used in this chapter:

(1) "Director" means the director of the department of labor and training or his or her authorized representative.

(2) "Employee" means any person permitted to work by an employer, except that independent contractors or subcontractors shall not be considered employees.

(3) "Employer" means any individual, firm, partnership, association, joint stock company, trust, corporation, receiver, or other like officer appointed by a court of this state, and any agent or officer of any of the above mentioned classes, employing any person in this state.

(4) "Wages" means all amounts at which the labor or service rendered is recompensed, whether the amount is fixed or ascertained on a time, task, piece, commission basis, or other method of calculating the amount.

28-14-2 Payment of wages — Form of payment — Establishment of regular paydays.

Every employer shall establish a regular payday on which wages shall be paid in full in lawful money of the United States, or checks on banks convertible into cash on demand at full face value of the checks. Each employee must be notified in writing, or by posted notice that may readily be seen by all employees, of a change in the scheduled payday at least three (3) paydays in advance of scheduled change. Each scheduled payday shall fall within nine (9) days of the end of the payroll period for which wages are computed unless prevented by inevitable casualty. If the ninth day is a holiday, payment upon the next business day is deemed a compliance with the terms of this section. If at any time of payment any employee is absent from his or her place of labor, he or she is entitled to payment at any time thereafter on demand.

28-14-2.1 Payment of Wages–Statement of earnings.
On every regular payday, every employer shall furnish to any employee the following:

(1) A statement of the hours worked by that employee during the applicable pay period; provided, that the statement need not be furnished to an employee described in Sec. 28-12-4.3;

(2) A record of all deductions made from that employee's gross earnings during the pay period together with an explanation of the basis or reason for the deductions; and

(3) For employers engaged only in the commercial construction industry, a record of the employee's hourly regular rate of pay. As used in this subsection, the term "commercial construction industry" includes a business which engages in the doing of work or the furnishing of materials, or both, in the building, erection, alteration, or preparation of an improvement on commercial real property.

28-14-2.2 Payment of Wages–Frequency of payment.

Except as provided in Sec. 28-14-4 and 28-14-5, every employee other than employees of the state and its political subdivisions and of religious, literary, or charitable corporations shall be paid weekly all due wages from his or her employer, except those employees whose compensation is fixed at a biweekly, semi-monthly, monthly, or yearly rate.

28-14-3 Payment of Wages–Deduction and payment of union dues.

Whenever a majority of the members of the certified collective bargaining unit in any place of employment shall request, in writing, from their employer that their union dues be deducted from their salary, the dues shall be deducted and remitted together with a list of the members whose dues have been deducted and the deducted amount to the treasurer of the labor union designated by the employee in the request. The deductions shall be taken out according to appropriate payroll periods.

28-14-3.1 Payment of Wages–Payroll deductions

(a) Subject to any provisions of the general laws or the public laws to the contrary, whenever any employer provides for a payroll deduction for any purpose, the employer shall transfer those funds deducted to the appropriate person, agency, partnership, or corporation entitled to the money deducted, within twenty-one (21) days following the last day of the month in which the deduction is made, except where the person, agency, partnership, or corporation entitled to money deducted permits otherwise in writing.

(b) Any employer who violates this section shall be liable to an employee in a civil action brought by the employee for any loss sustained by the employee as a result of a violation.

(c) In addition to the penalty provided by subsection (b), any employer who fails, intentionally, or who fails after written notification by the employee or by the collective bargaining representative of the employee, to transfer funds as required by subsection (a) within thirty (30) days following the last day of the month in which the deduction is made, is liable for an additional penalty in the amount of fifty dollars ($50.00) for each day beyond the thirty (30) day period during which he or she fails to transfer the funds, which additional penalty is payable to the employee from whose wages the funds were deducted.

28-14-4. Payment on separation by employer.

(a) Whenever an employee separates or is separated from the payroll of an employer, the unpaid wages or compensation of the employee shall become due on the next regular payday and payable at the usual place of payment.

(b) Whenever an employee separates or is separated from the payroll of an employer after completing at least one (1) year of service, any vacation pay accrued or awarded by collective bargaining, written or verbal company policy, or any other written or verbal agreement between employer and employee shall become wages and payable in full or on a prorated basis with all other due wages on the next regular payday for the employee.

(c) Whenever an employer separates an employee from the payroll as a result of the employer liquidating the business, merging the business, disposing the business, or removing the business out of state, all wages become immediately due and payable within twenty-four (24) hours of the time of separation at the usual place of payment. Additionally, if the employee has completed at least one year of service with the employer, holiday pay, vacation pay in full or on a prorated basis, and insurance benefits due the employee under a collective bargaining agreement, company policy, or other agreement between the employer and employee shall be considered as unpaid wages due and payable within twenty-four (24) hours of the time of separation at the usual place of payment.

28-14-5 Payment of Wages–Payment in event of industrial dispute.

In the event of the suspension of work as the result of an industrial dispute, the wages and compensation earned and unpaid at the time of the suspension, without abatement or reduction, shall become due and payable at the next regular payday.

28-14-6 Payment of Wages–Payment of wages of deceased employees.

(a) Any employer, including the state or a municipal corporation, may at any time after thirty (30) days from the death of an employee pay all wages or personal earnings due to the deceased employee, in order of preference, to: (1) the surviving husband or wife; (2) children eighteen (18) years of age or older in equal shares; (3) father and mother, or the survivor; (4) sisters and brothers in equal shares of the deceased employee; or (5) the person who has paid the funeral bill of the deceased employee; provided the employer has no actual notice of the issuance of any letters testamentary or letters of administration upon the estate of the deceased employee, or of the pendency of any petition for letters testamentary or letters of administration, if the wages or personal earnings do not exceed the sum of one hundred fifty dollars ($150).

(b) The payment of wages or personal earnings as provided in subsection (a) shall be a full discharge and release to the employer from any claim for those wages or personal earnings by the estate of the deceased employee or any other person.

(c) As a condition of payment, the employer may require satisfactory proof by affidavit or otherwise as to the relationship of the parties and may also require proper receipts or releases for the payment or payments.

28-14-8 Payment of Wages–Payment of undisputed amounts in wage disputes.

In case of a dispute over wages, the employer shall give written notice to the employee of the amount of wages which he or she concedes to be due and shall pay that amount without condition within the time set by this chapter; provided, that acceptance by the employee of any payment made under this chapter shall not constitute a release as to the balance of his or her claim.

28-14-9 Payment of Wages–Effect of private agreements — Payment of bonuses.

Nothing contained in this chapter shall in any way limit or prohibit the payment of wages or compensation at more frequent intervals, or in greater amounts or in full when or before due, but no provision of this chapter can in any way be contravened or set aside by a private agreement; provided, that no agreement contained in a written contract relating to the payment of any bonus in addition to the payment of wages shall be subject to this chapter.

28-14-10 Payment of Wages–Wage deductions unaffected.

None of the sections of this chapter shall be applicable to, control, or prohibit the deduction from wages of an employee by an employer in accordance with the terms of a collective bargaining agent of a majority of the employees in a bargaining unit of employees in which the employee is employed, The amount deducted from the wages of the employee is to be used for the purpose of defraying the costs of legal services, counsel fees, or contribution to a prepaid legal services plan for those employees, their families, and their dependents, or is to be paid to pension, welfare, vacation, or annuity plans or an insurance plan for accident, health, disability, or life coverage or similar plans, complete provisions for which are contained in a collective bargaining agreement or a supplemental agreement as provided in the plan between the employer and the authorized bargaining agent of the employees, and those plans are for the benefit of employees, their dependents, and beneficiaries in the bargaining unit, including full-time employees of the labor organization, provided it shall make the same payment for its employees to that plan or plans. None of the sections of this chapter shall be applicable to, control, or prohibit the deduction from wages of an employee by an employer in accordance with a written request made by the individual employee of:

(1) Trade union or craft dues or other obligations imposed by a collective bargaining contract;

(2) Subscriptions to a nonprofit hospital service corporation or nonprofit medical and/or surgical service corporation;

(3) Contributions to or for the use of a religious, charitable, scientific, literary, or educational corporation, trust, community chest fund, or foundation;

(4) Payments for the purpose of purchasing obligations of the United States or stock of a corporation pursuant to an employee stock purchase plan;

(5) Contributions to a pension plan in which the employee is a participant not required by a collective bargaining agreement entered into between the authorized collective bargaining representative of an employee and his or her employer;

(6) Contributions to or for insurance or under an insurance plan for accident, health, or life coverage not required by a collective bargaining agreement entered into between the authorized collective bargaining representative of an employee and his or her employer;

(7) Amounts to be credited to a share, deposit, or loan account in any credit union;

(8) Contributions, subscriptions, or payments of a similar nature not connected with past or present indebtedness; or

(9) Payments for participation in a vanpool transportation system where employee participation in the program is not a condition of employment.

28-14-10.1 Payment of Wages–Payment of wages directly to employee's account in financial institution.

(a) Notwithstanding any other provision of law, upon written request an employee of a state agency or any other employer may authorize a disbursing officer to make payment by sending to a financial organization designated by the employee a check or credit in the amount of net pay due to the employee drawn in favor of the organization and for credit to the checking account of the employee or for deposit in the savings account of the employee or for the purchase of shares for the employee.

(b) If more than one employee to whom a payment is to be made designates the same financial organization, the disbursing officer shall make the payment by sending to the organization a check or credit that is drawn in favor of the organization for the total amount designated by those employees and by specifying the amount to be credited to the account of each of those employees.
The term "state agency" means any department, agency, board, office, or commission in state government.

(2) The term "financial organization" means any bank, savings bank, savings and loan association or similar institution, or federal or state chartered credit union.

(d) Application of this section shall be with the consent of the employer.

28-14-10.2 Payment of Wages–Deduction of premium for prepaid legal services.

(a) Notwithstanding any other provision of law, upon the written authorization of an employee of any state agency, the disbursing officer shall deduct from the employee's wages and forward to the designated prepaid legal services plan that employee's contributions, subscriptions, or premium payments under the plan.

(b) All plans receiving funds under this section shall reimburse the state for the administrative costs of making the deductions.

(c) The term "state agency" means any department, agency, board, office, or commission in state government.

28-14-12. Employment records.

Every employer. subject to any provision of this chapter or any regulation or order issued under this chapter, shall make and keep for a period of not less than three (3) years in or about the premises wherein any employee is employed, a record of the name, address and occupation of each of his, her or its employee's, the rate of pay, and the amount paid each pay period to each employee, the hours worked each day, including the times start/stop and meal period, and each work week by the employee, and such other information as the director of labor and training shall prescribe by regulation as necessary or appropriate for the enforcement of the provisions of this chapter or the regulations or orders thereunder. These records shall be open for inspection or transcription by the director of labor and training or his or her authorized representative at any reasonable time. Every employer shall furnish to the director of labor and training or to his, her or its authorized representative on demand, a sworn statement of the records and information upon forms prescribed or approved by the director of labor and training.

28-14-13 Payment of Wages–Inspection powers.

The director and his or her authorized representatives have the right to enter any place of employment for the purpose of inspecting the employment records required by Sec. 28-14-12 and assessing compliance with this chapter.

28-14-17 Payment of Wages–Penalty for violations.

Any employer who violates or fails to comply with any of the provisions of this chapter shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than four hundred dollars ($400) for each separate offense, or by imprisonment for not less than ten (10) nor more than ninety (90) days, or by both fine and imprisonment. Each day of failure to pay wages due an employee at the time specified in this chapter shall constitute a separate and distinct violation.

28-14-18 Payment of Wages–Protection.
An employer shall not discharge, threaten, or otherwise discriminate against an employee regarding the employee's compensation, terms, conditions, location or privileges of employment because:

(1) The employee, or a person acting on behalf of the employee, reports or is about to report to the department verbally or in writing, a violation which the employee knows or reasonably believes has occurred or is about to occur of a law or regulation or rule promulgated by the department unless the employee knows or has reason to know that the report is false; or

(2) An employee is requested by the department to participate in an investigation, hearing, or inquiry held by the department or a court action.

28-14-18.1 Payment of Wages–Relief and damages.

(a) A person who alleges a violation of this chapter may bring a civil action for appropriate injunctive relief or actual damages or both within one year after the occurrence of the alleged violation of this chapter.

(b) An action commenced pursuant to subsection (a) may be brought in the superior court for the county where the alleged violation occurred, the county where the complainant resides, or the county where the person against who the civil complaint is filed resides or has his or her principal place of business.

(c) As used in subsection (a), "damages" means damages for injury or loss caused by each violation of this chapter.

(d) An employee shall show by clear and convincing evidence that he or she or a person acting on his or her behalf was about to report to the department verbally or in writing a violation which the employee knew or reasonably believed had occurred or was about to occur of a law or regulation of the department.

28-14-18.2 Payment of Wages–Reinstatement.

A court, in rendering a judgment in an action brought under this chapter, shall order, as the court considers appropriate, reinstatement of the employee, the payment of back wages, full reinstatement of fringe benefits and seniority rights, actual damages, or any combination of these remedies. A court may also award the complainant all or a portion of the costs of litigation, if the court determines that the award is appropriate.

28-14-19 Enforcement powers and duties of director of labor and training.

(a) It shall be the duty of the director to insure compliance with the provisions of this chapter, to investigate any violations of this chapter, to institute or cause to be instituted actions for the collection of wages and to institute action for penalties provided under this chapter. The director or his or her authorized representatives are empowered to hold hearings and he or she shall cooperate with any employee in the enforcement of a claim against his or her employer in any case whenever, in his or her opinion, the claim is just and valid.

(b) The director is authorized to supervise the payment of amounts due to employees, and the employer may be required to make these payments to the director to be held in a special account in trust for the employees, and paid on order of the director directly to the employee or the employees affected. The employer shall also pay the director an administrative fee equal to twenty-five percent (25%) of any payment made directly to the employee or employees or made to the director pursuant to this section. and chapters 5-23, 25-3 and 28-12 for the first offense. An additional payment in the amount of fifty percent (50%) shall be assessed for each subsequent violation. The fee shall be deposited in the general fund.

(c) The director may institute any action to recover unpaid wages or other compensation under this chapter, including the administrative fee contained in subsection (b) of this section, with or without the consent of the employee or employees affected.


28-14-20 Payment of Wages–Filing of claims with director.

(a) All claims for wages due must be filed with the director within three (3) years from time of services rendered by an employee to his or her employer.

(b) A claim may be filed by a person who is required to be paid wages for his or her labor; or if a minor, by his or her parent or guardian; or by the lawful collective bargaining representative of the person; or a representative authorized in writing by the employee.

28-14-23 Payment of Wages–Assignment of wage claims to director — Prosecution of actions.

The director has the power and authority to take assignments of wage claims and rights of action for penalties as provided by Sec. 28-14-17 and 28-14-18 without being bound by any of the technical rules with reference to the validity of the assignments; and has the power and authority to prosecute actions for the collection of the claims of persons who, in the judgment of the director, have claims which are valid and enforceable in the courts. The director has the power to join various claimants in one preferred claim or lien, and in case of suit to join them in one cause of action.

28-14-24. Setoff of money owed by employee to employer.

(a) In any action for unpaid wages brought under the provisions of this chapter, the employer-debtor shall not deduct as a setoff or counterclaim:

(1) Any money allegedly due the employer as compensation for damages caused to the employer's property by the negligence of the employee; or

(2) Any money allegedly due the employer as rent; or

(3) Any money allegedly owed to the employer by the employee;

(b) Provided, however, that any employer granting his employee a loan or advance against future earnings or wages may deduct the loan as a setoff or counterclaim if evidenced by a statement in writing signed by the employee; and, provided, further, that nothing in this section shall be construed to limit or restrict in any way any rights which the employer now has to recover, by a separate legal action, any money owed the employer by the employee.

28-14-31. Wages upon return from lay-off.

Whenever an employee who has worked for an employer for more than one year is separated from work by a "lay-off", the employer shall offer to pay to the employee the same wages earned at the time of the separation upon the employee's later return to work at the same or similar job

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