The steady rise in Rhode Island’s minimum wage has put more money in the pockets of many entry-level workers, but at what cost?
Since 2018, Rhode Island has raised its minimum wage seven times, totaling a 39% increase.
The state’s minimum wage will rise again on New Year’s Day by $1, to $16, with another hike to $17 coming in 2027.
Businesses have persistently warned that the state has been moving too fast to boost wages, leading many to raise prices and cut staffing to help manage the increased costs. Some businesses are increasingly shifting to part-time positions without company benefits to replace more costly, full-time staffing.
Before lawmakers push through another hike, they need to study the full effects of the hikes that have been approved since the minimum wage was $10.10 in 2018.
The state should not be putting businesses and employees in the position of taking from Peter to pay Paul, just to keep up with or stay ahead of minimum wages in neighboring states.