The Rhode Island Department of Labor and Training (DLT) issued new rules that clarify what constitutes “retail businesses” regarding calculations of overtime pay requirements and premium pay for work on Sundays and holidays. The rules confirm the general understanding of the overtime and premium pay requirements but provide additional certainty for employers on which businesses are and are not considered retail.

• The Rhode Island DLT has established new rules defining “retail businesses” and clarifying overtime and holiday pay calculations, emphasizing that only those selling directly to consumers qualify.
• The rules clarify that retail businesses can count Sunday and holiday hours towards overtime calculations, impacting how premium pay is administered during those periods.

Effective August 17, 2025, the DLT regulation, “Payment of Wages, Employer Exemptions from Weekly Pay, and Exemptions for Work on Holidays and Sundays,” (260-RICR-30-05-2) outlines rules and procedures related to the payment of wages, exemptions from weekly pay requirements, and exemptions from premium pay for work on Sundays and holidays.

Specifically, the rules define “retail businesses” as those that sell directly to consumers and not to other businesses. This distinction is critical for calculating overtime and Sunday and holiday pay, as retail businesses are allowed to count Sunday and holiday pay against any overtime hours worked.

Definition of Retail Business

The rules define “retail...

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