Federal & State Regulations | Tips - Rhode Island | J. J. Keller® Compliance Network

State Info

Summary of difference between federal and state regulations

There are certain instances where employers can pay employees at a rate lower than the minimum hourly wage specified by the federal Fair Labor Standards Act. The most common instance pertains to an employee who earns tips. The employer can deduct the amount of the tips (but only up to a certain maximum amount) from the hourly wage.

Rhode Island General Law §28-12-5 requires a minimum wage of $2.89 per hour for tipped employees. The tips combined with the employer’s cash wage must equal at least the minimum wage.

Effective June 28, 2022, Rhode Island enacted a new tip law (HB 7510). This state law is similar to the federal Fair Labor Standards Act. However, under Rhode Island law, nonexempt (hourly) managers or supervisors can be part of a tip pool. Under the FLSA, however, no managers/supervisors can be in a tip pool.