(a)  Every employer shall pay to each of the employer’s employees who are engaged in any work or employment in which gratuities have customarily and usually constituted a part of his or her weekly income, the rate as provided by § 28-12-3 and § 28-12-3.1.

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Terms Used In Rhode Island General Laws 28-12-5

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Director: means the director of labor and training, or his or her duly authorized representative. See Rhode Island General Laws 28-12-2
  • Employee: includes any individual suffered or permitted to work by an employer. See Rhode Island General Laws 28-12-2
  • Employer: includes any individual, partnership, association, corporation, business trust, or any person, or group of persons, acting directly, or indirectly, in the interest of an employer, in relation to an employee. See Rhode Island General Laws 28-12-2
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Statute: A law passed by a legislature.
  • Wage: means compensation due to an employee by reason of his or her employment. See Rhode Island General Laws 28-12-2

(b)  Allowance for gratuities as part of the hourly wage rate for restaurants, hotels, and other industries, except taxicabs and limited public motor vehicles, shall be an amount equal to the applicable minimum rates as provided by § 28-12-3 and § 28-12-3.1 less two dollars and eighty-nine cents ($2.89) per hour. “Gratuities” means voluntary monetary compensation received directly or indirectly by the employee for services rendered.

(c)  Each employer desiring to deduct for gratuities as part of the minimum rates as provided in § 28-12-3 and § 28-12-3.1 wages paid to an employee shall provide substantial evidence that the amount shall be as set out in the formula in subsection (b) of this section; however, the cash wage shall not be less than two dollars and eighty-nine cents ($2.89) per hour; provided, however, that commencing January 1, 2016, the cash wage shall increase by fifty cents ($.50) to an amount not less than three dollars and thirty-nine cents ($3.39) per hour; provided further, that commencing January 1, 2017, the cash wage shall increase by fifty cents ($.50) to an amount not less than three dollars and eighty-nine cents ($3.89) per hour.

(d)  The director of labor and training shall notify employers concerning what type of proof shall be accepted as substantial evidence for the purpose of this subsection. Employees involved shall be entitled to a hearing on the question of the amount of deduction if they so desire.

(e)  In cases where wages are figured by the employer on an incentive basis in such a manner that an employee of reasonable average ability earns at least the minimum wage established by § 28-12-3 and § 28-12-3.1, it shall be taken that the employer has complied with this statute. It shall be of no concern to the director of labor and training how the employer arrives at its wage scale so long as it is not unreasonable in its demands on the employee.

(f)  Where, in the case of the employment of a full-time student who has not attained his or her nineteenth (19th) birthday engaged in the activities of a nonprofit association or corporation, whose aims and objectives are religious, educational, librarial, or community service in nature, the employer-employee relationship does exist, the employer shall pay to each such employee wages at a rate of not less than ninety percent (90%) of the minimum wage as specified in § 28-12-3. In case of any conflict between provisions of this section and those of § 28-12-3.1, the provisions of § 28-12-3.1 shall govern.

History of Section.
P.L. 1956, ch. 3745, § 2; G.L. 1956, § 28-12-5; P.L. 1957, ch. 104, § 2; P.L. 1962, ch. 105, § 4; P.L. 1963, ch. 135, § 1; P.L. 1966, ch. 50, § 1; P.L. 1966, ch. 140, § 1; P.L. 1967, ch. 220, § 2; P.L. 1974, ch. 152, § 5; P.L. 1975, ch. 302, § 1; P.L. 1979, ch. 68, § 1; P.L. 1986, ch. 315, § 1; P.L. 1996, ch. 286, § 2; P.L. 1996, ch. 294, § 2; P.L. 1999, ch. 56, § 1; P.L. 1999, ch. 106, § 1; P.L. 2000, ch. 156, § 1; P.L. 2000, ch. 239, § 1; P.L. 2004, ch. 6, § 32; P.L. 2015, ch. 228, § 1.