Under The Dome 7/16/2025

Final 2025 Legislative Wrap-up, Or Is It?

In this, hopefully the last 2025 edition of Under The Dome, we provide you with a list of bills that have become law in 2025, along with the effective dates of the new laws. The legislature finished its work at 1:30 am June 21, 2025. Since then, the General Assembly has transmitted bills to the Governor for his consideration. That process was completed last Friday. As you know, the federal government passed legislation affecting state programs, with some changes coming in future years. A team in Rhode Island is reviewing the large bill to determine the changes to state revenue. If the Rhode Island budget must be amended as a result of the passage of the federal law, the legislature will return for a fall session. In the event a session is called to order, all legislation that has not passed. to date, is technically alive and can be addressed. Past legislatures have limited voting to the issue or issues causing the General Assembly to reconvene, but it is not a rule.

New Laws Passed During the 2025 Legislative Session

Labor Issues:

Minimum Wage – H.5029 SubA/S.125 SubA – Public Law Chapters 222 and 223 increase the minimum wage to $16 per hour starting January 1, 2026 and to $17 per hour January 1, 2027. The original bills called for a $1 increase each year for five years, reaching $20 in 2030. A push came in the final weeks of session to reduce the number of years to three years. Your Chamber pushed further to reduce the impact to two years. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5029A.pdf

 

TDI/TCI Wage base and Siblings – H.6066 SubA/S.974aa – Public Law Chapters 237 and 235 - increase an employee’s taxable wage base for TDI/TCI from $89,200 to $100,000 starting January 1, 2026. The new law also expands TCI wage reimbursement from 60% to 70% of weekly wages beginning January 2026 and 75% after January 2027. Lastly, the law adds the care of “siblings” as an eligible reason to take TCI benefits. “Sibling” is defined as children with a common parent, including biological siblings, half siblings, step-siblings, foster siblings, and adopted siblings. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25222.htm

 

TDI/TCI Coverage for Organ Donation – H.6065aa/S.829 SubA – allow living organ donors to use TCI benefits to cover time needed for any procedures, medical tests, and surgeries related to the donation - up to thirty business days. Employees may take up to five days for donating bone marrow to a recipient. The Chamber worked with the proponents of these bills to address these rare situations with the least amount of impact to the operation of a business. The law becomes effective January 1, 2026. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0829A.pdf

 

Employer “Mini-Handbook” Requirement - H.5679 SubAaa/S.70 SubAaa – Public Law Chapters 337 and 338 - changes an employer’s responsibilities, starting January 1, 2026, as it relates to providing a type of “mini employee handbook” (in English) to employees when they are hired. The information must include: rate or rates of pay and the basis for pay (hour, shift, day, week, salary, piece, commission, or other method), allowances, if any, for meals and lodging; employer's policy on sick, vacation, personal leave, holidays and hours; employee's employment status and whether the employee is exempt from minimum wage and/or overtime; a list of deductions that may be made from the employee's pay; number of days in the pay period, the regularly scheduled payday, and the payday on which the employee will receive the first payment of wages earned; legal name of the employer and the operating name of the employer, if different from its legal name; physical address of the employer's main office or principal place of business, and its mailing address if different; and telephone number of the employer. Failure to comply results in a penalty of $400 for the first and second offense. Subsequent offenses are subject to the penalties in RIGL 28-14-17(a) which reads, “guilty of a misdemeanor, and upon conviction of the misdemeanor, the employer shall be punished by a fine of not less than four hundred dollars ($400) for each separate offense, or by imprisonment of up to one year, or by both fine and imprisonment.” The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5679Aaa.pdf

 

Menopause Accommodation – H.6161/S.361 - Public Law Chapters 225 and 226 - expand the current law to include menopause and menopause related conditions in the law on fair employment practices pertaining to pregnancy and pregnancy related conditions. The language, which became effective upon passage, refers to accommodations for “the need to manage the effects of vasomotor symptoms” which is commonly known as “hot flashes” or “night sweats.” The final version of the bill can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25225.htm

 

Unemployment Compensation Partial Benefits – H.5448aa/S.622aa – Public Law Chapters 236 and 296 – extend the current partial unemployment benefit program for one more year to June 30, 2026. During the COVID-19 pandemic, the General Assembly and Governor increased the total amount of earnings a partial-unemployment insurance claimant could receive before being

entirely disqualified for unemployment insurance benefits and increased the amount of earnings disregarded when calculating a weekly benefit rate. At the time, it was deemed necessary because jobs were hard to find as many places were forcibly closed by the state. The law was about to sunset June 30, 2025. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0622aa.pdf

 

Labor Relations Definition of Employee – H.5187 SubAaa/S.124 SubBaa – change the definition of “employee” under Rhode Island law, effective immediately. Members of the unions pushed these bills as a means to head off any federal changes in the National Labor Relations Board. The new definition reads “"Employee" specifically includes any teaching assistants, research assistants, fellows, residential assistants and proctors who perform services for an employer in return for payment or other compensation, notwithstanding whether the employee is a student, or the supervised teaching, research, or other services are a component of their academic development.” These individuals are currently covered in Rhode Island. The law also gives the Board the ability to adopt rules for electronic filing of cards of interest, decertification signature cards, signature affirmation documents and designation of bargaining agent and waiver of right-to-vote forms. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0124Baa.pdf

 

Captive Audience Ban – H.5506 SubA/S.126 SubA – limit the First Amendment and Fourteenth Amendment rights of employers by barring them from holding mandatory meetings with employees to discuss any issue covered under the bill’s definition of “political matters.” “Political matters” is defined as, “topics that are unrelated to the employer's business or business activities, such as subjects relating to elections for political office, political parties, proposals to change legislation or regulations which are not directly related to the employer's business, and a decision whether to join or support any political party or political, civic, community, fraternal or labor organization.” It is this very situation that was anticipated, and addressed by Congress under the Taft-Hartley Act of 1947. That federal law specifically allows employers to hold such meetings provided they do not threaten employees in the meeting. The new state law does allow employers to: (1) communicate to its employees any information that the employer is required by law to communicate, but only to the extent of such legal requirement, (2) communicate to its employees any information that is necessary to perform their job duties, (3) communicate with employees of higher education entities if it is part of coursework, symposia or an academic program at such institution, (4) engage in casual conversations with employees if participation is not required. The law is in effect now. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5506A.pdf

Energy and Environment Issues:

Act on Climate – Senate Resolution 23 – Resolution 313 - creates a five-member special legislative commission to provide recommendations for any necessary legislation and/or oversight for the Act on Climate. This commission must report back to the Senate on or before May 1, 2026, and expires June 1, 2026. The resolution can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0023.pdf

 

Nuclear Energy Procurement – H.5575SubA/S.318 SubA – Public Law Chapters 101 and 102 - allow the electric distribution company to procure nuclear electricity through long-term contracts. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25101.htm

 

Extended Producer Responsibility (EPR) – H.6207 SubAaa/S.996 SubAaa – Public Law Chapters 356 and 355 – require the Department of Environmental Management (DEM), the Department of Administration (DOA), and the Rhode Island Resource Recovery Corporation (RIRRC), to commission a statewide needs assessment to determine the infrastructure, policy, and programmatic requirements necessary to support a statewide redemption and recycling plan that includes packaging materials, paper products, and standard and miniature size beverage containers (aluminum, glass, plastic, etc). This study was passed following an impasse between proponents and opponents of the bottle deposit and redemption bill and the EPR bills. The commission must complete its work by December 1, 2026. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0996Aaa.pdf

 

 

Taxation Issues:

 

State Budget - H.5076 SubAaa – Public Law Chapter 278 – became effective without the Governor’s signature June 29, 2025. The Chamber has reported extensively on this legislation. The 441-page document includes the following taxes:

 

· Whole homes that are rented for less than thirty days would be subject to the hotel tax. Currently, those properties are exempt.

· The hotel tax increased from 1% to 2%

· Real estate conveyance tax – the budget includes a 63% increase in the real estate conveyance tax which is paid at the time of sale of a property. Prior to 2021, all properties were taxed at $2.30 per $500 of sale price. In 2021, the General Assembly increased the tax on residential properties selling at a price over $800,000 – adding another $2.30 per $500 for the portion of the selling price over the threshold (sometimes referred to as Tier 2 properties). This year, an additional increase of 63% is included on both Tier 1 and Tier 2 properties. The tax increase is estimated to raise $13.5 million in this fiscal year and $18.7 million in FY27.

· Sales tax is applied to short-term parking up to one month. Estimated to generate $1.6 million

· Gas tax increases by 2 cents per gallon with a majority of the revenues going to RIPTA. The existing gas tax law has an automatic adjustment every two years. On July 1, 2025, the gas tax will rise to $.41 a gallon.

· A new state tax on non-owner-occupied homes was included in this budget. Some media outlets have dubbed this the “Taylor Swift” tax. The language defines “non-owner occupied as “the residential property does not serve as the owner’s primary residence and is not occupied by the owner of the property for a majority of days during a given taxable year.” If the property has an assessed at a value over $1 million, and the property is not rented for more than 183 days during the previous taxable year or was subject to the room reseller tax, or lodgings tax, it falls under the new tax. The tax amounts to $2.50 for each $500 of assessed value in excess of $1 million. The tax is levied in addition to all other taxes assessed. The tax can be paid in four quarterly payments, with the first installment due September 15th of a given taxable year.

· Fee increases include: a $1 increase in the technology surcharge fee for vehicle registrations, a new $200 fee each time a battery electric vehicle is registered, $100 for a plug-in hybrid registration, a $50 fee for a hybrid electric vehicle, increased penalties for various law infractions.

 

The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5076Aaa.pdf

 

 

Industry Specific Issues:

CDL Training Requirement – H.5231/S.523 – Public Law Chapters 64 and 65 – require that commercial driver instruction include industry-specific training on the recognition, prevention, and reporting of human trafficking. The law is in effect at this time. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25064.htm

 

Investments of Domestic Insurance Companies – H.6315/S.1047 – Public Law Chapters 88 and 87 - eliminate the Rhode Island restriction on insurance companies that limited the investment in Schedule BA assets to 10% of assets. Schedule BA assets are long-term invested assets that do not fit into other asset categories. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25088.htm

 

Non-profit Salary Disclosure - S.579 SubA – Public Law 41 – requires non-profits that receive grants or other funding, in excess of $50,000, from the general assembly directly or appropriated through the state budget, to disclose the total benefit package paid to the five highest compensated employees with reportable compensation of at least $100,000 during the previous fiscal year. The disclosure must include a description of the position, the total salary or compensation paid along with all benefits provided including health insurance, retirement or pension contributions, and any other allowances for items such as automobiles, lodging or communication devices. The names of the individual employees do not have to be disclosed. The disclosure must be made within ninety days of receipt of the grant or funding. The law is in effect at this time. The Public Law can be viewed at: https://webserver.rilegislature.gov/PublicLaws/law25/law25041.htm

 

 

Ticket Fees and AirBnB Fees – H.5247 SubAaa/S.17 SubA –require entities advertising live-event tickets or short-term lodging to include all fees associated with the transaction before the consumer consents to purchase. Any violation is subject to the Rhode Island Deceptive Trade Practices Act. The law takes effect January 1, 2026. The link to the Public Law is not yet available. The final version of the bill can be viewed at: https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5247Aaa.pdf

 

 

Bills of Interest That Did Not Pass:

 

S.959 An Act Relating to Labor and Labor Relations — Workplace Psychological Safety Act. This bill is often referred to as “the bullying bill.” S.959 holds employers responsible for failure to respond and eliminate “psychological abuse” in the workplace. The definition of "psychological abuse" includes actions such as “mistreatment that has the effect of hurting, weakening, confusing, or frightening a person mentally or emotionally.” These terms are very subjective. They can mean different things to different people, leaving everyone wondering what they can and cannot do or say in the workplace. An employee may use both direct and circumstantial evidence to prove a violation occurred. In the event an allegation is deemed to fit the definitions outlined in the legislation, that employee is entitled to economic, compensatory, and punitive damages or $5,000, whichever is greater. The bill passed the Senate but remains in the House Labor Committee.

H.5493 SubA/S.91, Acts Relating to Health and Safety – Building Decarbonization Act of 2025. Both bills went through drafting changes during the last night of session. H.5493 SubA was amended to remove the requirement to build “electric-ready” buildings, but kept in place the requirement for owners of buildings greater than 25,000 sq. ft. to report their annual energy usage by type to the Office of Energy Resources (OER). The Governor had proposed benchmarking state government building first before moving to the private sector. The House passed the bill the night of June 20th, but never transmitted it to the Senate for consideration. The Senate companion remains in the Senate Environment and Agriculture Committee.

 

S.302 SubAaa, An Act Relating to Labor and Labor Relations – Rhode Island Noncompetition Agreement Act, passed the Senate but was not transmitted to the House. This bill originally banned almost all noncompete agreements, but it was amended to apply to employees making less than $125,000 a year (full exemptions to the ban existed for businesses governed by Gramm-Leach-Bliley Act, and agreements made in connection with the sale of a business).

 

H.5940, An Act Relating to Labor and Labor Relations – The Rhode Island Opportunity for Employee Ownership Act. H.5940 requires a majority of businesses in Rhode Island to give all full-time and part-time employees seven-days-notice of an intent to sell all or at least 51% of the business. This requirement applies to every business employing between three and five hundred employees that is privately held and not a publicly traded company. It also exempts pass though entities. Once the notice is given, the employees have thirty days to respond with an intent buy notice, not an offer to purchase. If the employees form a group and give the owner an intent to buy notice, they then have 180 days to determine what they believe the value of the business to be before making an actual offer. H.5940 remains in the House Labor Committee.

 

H.5943/S.857, Acts Relating to Businesses and Professions – Holiday Business, begin the process of addressing Rhode Island’s designation as the last state in the country to require premium pay be paid to employees who work Sundays or holidays as a part of their normal 40-hour work week. Massachusetts phased out its requirement leaving Rhode Island as the lone outlier. The legislation exempts small businesses – defined as a business with less than 15 employees – from the premium pay requirement. The bills also exempt larger employers if they are covered by a collective bargaining agreement that includes the exemption. H.5943 remains in the House Labor Committee. S.857 remains in the Senate Labor Committee.

 

H.5245/S.185, Acts Relating to Public Utility and Carriers, create a tiered rate system for electricity and natural gas customers whose household income level is below 150% of the federal poverty level and who are eligible for LIHEAP assistance or Medicaid. For these households, the plan envisions capping electric rates to ensure that they pay no more than 3% of their income on electricity or 6% of their income if the house utilizes electricity as a sole source of heat. The program will be funded by increasing rates on all other customers including commercial and industrial customers. The House bill remains in the House Corporations Committee. The Senate bill is in the Senate Finance Committee

 

H.5678/S.589, Acts Relating to Labor and Labor Relations – Minimum Wage – Overtime. Under current law, employers are not obligated to pay overtime to their executive, administrative, and professional employees who are compensated through salary rather than hourly wages, unless the salary of such employees would fall below the minimum wage. These bills would raise that cut-off and make additional salaried employees non-exempt and therefore eligible for overtime pay, based on differing formulas for small employers (up to 50 employees) and large employers (50 or more employees) Beginning 2026, the multiplier would be one and one-half times the minimum hourly wage for a 40-hour workweek for small employers and two times the minimum hourly wage for a 40-hour workweek for large employers. Essentially, this makes more employees subject to overtime payments.