Home Economy Minimum wage hike, short-term rental tax among new laws going into effect...

Minimum wage hike, short-term rental tax among new laws going into effect Jan. 1

By

Christopher Allen

-

12/29/2025

StatehousePB — A NUMBER OF NEW state laws will take effect in Rhode Island on Jan. 1, including an increase to the minimum wage and new requirements for employers./ PBN FILE PHOTO/ARTISTIC IMAGES

PROVIDENCE – Another minimum wage hike and several requirements for Rhode Island employers are among a host of new laws that will take effect Jan. 1. After a phase-in increase schedule approved in 2021, the state’s minimum wage will be set at $16 per hour in 2026 and move to $17 on Jan. 1,

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PROVIDENCE – Another minimum wage hike and several requirements for Rhode Island employers are among a host of new laws that will take effect Jan. 1. After a phase-in increase schedule approved in 2021, the state’s minimum wage will be set at $16 per hour in 2026 and move to $17 on Jan. 1, 2027. Massachusetts will remain at $15 while Connecticut’s minimum wage is rising to $16.94 per hour. The federal minimum wage is $7.25 per hour. The local hotel tax will double from 1% to 2% and a new 5% state tax will apply to entire-home short-term rentals of fewer than 30 days. In addition, all hotel employees and short-term rental property operators must annually receive human trafficking awareness training established or approved by the R.I. Department of Business Regulation. Rhode Island employers will be required to provide new employees with a written notice of employment terms at the time of hiring, outlining pay rates and schedules, employment classification, wage exemptions, leave-of-absence policies and any lawful deductions being taken from wages. Other laws taking effect Jan. 1:

Debt collectors will be prohibited from seeking a lien against a person’s primary residence for medical debt or garnishing wages to collect judgments based on medical debt. Credit-reporting agencies are also prohibited from reporting a consumer’s medical debt or collecting debt payments during insurance appeals.
Approved in 2024, The Data Transparency and Privacy Protection Act provides for the legal right to access, correct and delete personal data, as well as opting out of the sale of personal data or its use for targeted advertising. It applies to commercial websites or internet service providers conducting business in Rhode Island that collects, stores and sells customers’ personally identifiable information. Also, for-profit entities that collect the personal information of at least 35,000 Rhode Island residents, or controlled or processed the personal data of at least 10,000 customers, while deriving more than 20% of their gross revenue from the sale of personal data.
Legislation expanding Rhode Island’s Temporary Caregiver Insurance program gives qualifying workers a full eight weeks of benefits to care for a seriously ill family member or to bond with a newborn child, adopted child or foster-care child. Employees may also use temporary caregiver insurance benefits for paid leave to serve as a bone marrow transplant donor (5 business days) or a living organ donor (30 business days).

Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.