Introduction to employment laws in Rhode Island
Overview
Rhode Island has a robust set of state and federal laws that govern its employment landscape, protecting both employers and employees.
Understanding these laws is crucial for any business that wants to hire in the state. In this guide, we’ll explain all.
Employing in Rhode Island: Key employment laws and practices
Standard work hours
In Rhode Island, full-time employment is generally considered to be between 35 to 40 hours per week. The specific number of hours is not defined by law but is usually decided between the employer and the employee.
The hours of work for contractual workers or part-time employees may vary based on the terms of their contract. Self-employed professionals set their own work hours.
Minimum wage and overtime
Rhode Island’s minimum wage as of 2024 is $14 per hour. Overtime in the state is governed by federal guidelines found in the Fair Labor Standards Act (FLSA): Non-exempt employees must receive overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees might be exempt from overtime if they earn more than the state or federal exemption threshold or if they perform executive or managerial duties. In Rhode Island, the salary threshold for exemption is currently $684 per week, matching the federal minimum.
Insurance and benefits
In Rhode Island, employers are required to provide certain benefits and insurance coverage to their employees.
Employers with 50 or more full-time employees are required to offer health insurance under the Affordable Care Act (ACA). Employers with fewer than 50 full-time employees can choose to offer health insurance but are not required by law.
While not mandated by law, many employers in Rhode Island offer retirement benefits such as 401k plans to attract and retain talent. If an employer chooses to offer a retirement plan, it must comply with federal laws, including the Employee Retirement Income Security Act (ERISA).
Rhode Island employers are also responsible for providing temporary disability insurance (TDI) for employees who are unable to work due to illness, injury, or pregnancy. This benefit is funded by a special tax withheld from employees’ pay.
Benefit | Description |
Health insurance | Mandated for employers with 50 or more full-time employees under ACA |
Retirement benefits | Optional |
State unemployment insurance | 1.1% – 9.7% tax range |
Temporary disability insurance | 1.2% tax |
Multiplier makes it easy to manage benefits for Rhode Island employees.
Meals and rest periods
Rhode Island employment laws mandate a 20-minute meal break for employees who work six hours and 30-minute meal break for employees who work more than eight hours. These breaks may be unpaid if the employee is relieved of all duties. The state otherwise defaults to regulations found in the FSLA.
Anti-discrimination laws
In Rhode Island, a robust framework of anti-discrimination laws protects workers. These laws prohibit discrimination based on age, religion, sexual orientation, gender, race, and several other protected categories. The Rhode Island Fair Employment Practices Act (FEPA) provides broad protections against discrimination and harassment in the workplace.
Employers must comply with both state and federal laws, such as the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA).
Employers are required to maintain a workplace free from discrimination and harassment and are responsible for promptly addressing any complaints. It is highly recommended that businesses seek advice on Rhode Island HR compliance to ensure they have effective, legally sound policies in place to prevent and address discrimination.
Leave policies
Employers in Rhode Island are subject to certain state-specific leave requirements in addition to federal leave laws like the Family and Medical Leave Act (FMLA).
While there is no legal obligation for employers to provide paid vacation time, many companies offer this benefit as part of their overall compensation package.
Rhode Island requires employers with 18 or more employees to provide paid sick leave to their employees at a rate of one hour for every 35 hours worked, up to a maximum of 40 hours per year.
Under the FMLA and the Rhode Island Parental and Family Medical Leave Act, eligible employees are entitled to up to 13 weeks of unpaid leave to care for a family member with a serious health condition or to birth or adopt a child.
Leave type | Requirement | Description |
Vacation | Not legally required | At the employer’s discretion |
Sick leave | Mandatory | 1 hour per 35 hours worked |
Parental and maternity leave | Mandatory | 13 weeks of unpaid leave |
Bereavement leave | Not legally required | At the employer’s discretion |
Jury duty/Military service | Mandatory | Unpaid time off |
Easily onboard employees in Rhode Island?
Termination laws
Rhode Island follows the “at-will employment” doctrine, meaning that either party can terminate the employment relationship at any time for any reason that is not illegal, such as discrimination.
However, many employers choose to provide a notice period, with two weeks being the standard practice. In cases of mass layoffs, employers must follow the Worker Adjustment and Retraining Notification Act (WARN) and provide 60 days’ notice to affected employees.
Safety and health
Rhode Island employers are required to provide a safe and healthy work environment. State safety regulations vary by industry, but all employers must comply with federal Occupational Safety and Health Administration (OSHA) standards. Employers must promptly report workplace injuries and illnesses as required by law.
Taxes in Rhode Island
Employers in Rhode Island are responsible for withholding and remitting several types of taxes from their employee’s wages. These include federal and state income taxes, Social Security and Medicare taxes (FICA), and state unemployment insurance taxes.
Tax type | Employer contribution | Employee contribution |
Federal income tax | N/A | Varies |
Rhode Island state income tax | N/A | 3.75% to 5.99% |
FICA Social Security | 6.2% (up to $142,800 in wages) | 6.2% (up to $142,800 in wages) |
FICA Medicare | N/A | 1.45% (Plus an additional 0.9% on earnings over $200,000) |
Rhode Island unemployment insurance | Varies by employer’s experience rating | None |
Managing Rhode Island employees with an Employer of Record (EOR)
Rhode Island employment laws and HR compliance considerations can be complex, requiring careful attention to detail and a firm understanding of both state and federal regulations.
As an Employer of Record (EOR) solution, Multiplier enables your business to legally employ full-time workers in the US without the need for setting up local entities. Our Global Payroll platform allows you to pay international employees and contractors while handling local taxes, contributions, and withholdings.
With this all-in-one platform, you can hire, onboard, pay, and manage international employees and contractors from a single interface.
Book a demo today and explore how Multiplier can streamline your HR and compliance processes in Rhode Island.
FAQs
In Rhode Island, full-time employment is typically considered to be between 35 and 40 hours per week. However, this benchmark is not legally defined.
In accordance with the federal Fair Labor Standards Act, non-exempt employees in Rhode Island are entitled to overtime pay at 1.5 times their regular rate if they work more than 40 hours in a week.
The minimum wage for private sector employees in Rhode Island is currently set at $14 per hour.
Employer contributions range from 1.10% to 9.70% for state unemployment insurance, 1.00% for new employer state unemployment, and 6.20% for federal FICA Social Security. The overall total employment cost can range between 10.44% to 24.44%.
Rhode Island offers one hour of paid sick leave for every three hours worked, up to an annual maximum of 40 hours of paid sick leave. Maternity, paternity, and parental leave fall under the FMLA, which provides up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons. In terms of termination, most employees are employed at will, meaning either party can end the employment relationship without notice. However, best practice is typically two weeks notice as a minimum requirement.
