Rhode Island Minimum Wage Will Rise to $9.00 in 2015

Author: Michael Cardman, XpertHR Legal Editor

July 7, 2014

With the federal minimum wage holding steady for five years and counting, more and more states are taking matters into their own hands by raising their minimum wage rates well above the $7.25 federal rate.

The latest is Rhode Island, whose governor signed a new law on July 1 that will raise the state's minimum wage from $8.00 to $9.00, effective January 1, 2015.

Rhode Island follows Connecticut, Delaware, Hawaii, Massachusetts, Maryland, Michigan, Minnesota, West Virginia and Vermont, all of which have passed minimum wage increases this year. Legislation has been introduced in almost every other state in the union and minimum wage referendums will be on the ballot in at least three states' elections this fall.

Rhode Island's increase to $9.00 will make its minimum wage rate among the highest in the nation. The northeast has the highest average minimum wage rate of the nation's four main geographical regions. Several of Rhode Island's neighbors - Connecticut, Massachusetts, New York and Vermont - will also have minimum wage rates of $9.00 or higher come January 1, 2015.

Legislation and ballot initiatives to increase the minimum wage are a key part of Democrats' voter turnout strategy for this year's elections, so it is likely that Rhode Island will not be the last state to increase its minimum wage this year.