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Tuesday, November 25, 2025

Rhode Island Updates Regulations on Sunday and Holiday Premium Pay - Littler Mendelson P.C.

The Rhode Island Department of Labor and Training (DLT) has published new rules clarifying the obligation of employers to pay premium pay to employees who work on Sundays and holidays. A new regulation defines for the first time what qualifies as a “retail business” – a key factor in determining how businesses must calculate Sunday and holiday premium pay under Rhode Island law.

Rhode Island Overtime and Premium Pay

Rhode Island requires overtime pay, at time-and-a-half, for nonexempt employees who work more than 40 hours in a week. Rhode Island also requires time-and-a-half to be paid for work on Sundays and certain holidays. Two different laws impose this obligation, but they differ significantly depending upon whether the employer is considered a retailer.

Most Rhode Island employers must pay overtime and Sunday/holiday premium pay separately. For instance, if an employee works 50 hours in a week for a non-retailer, including eight hours on Sunday, the employee must be paid 32 hours at straight-time; eight hours at time-and-a-half for Sunday; and another 10 hours at time-and-a-half for the hours worked over 40 (a process sometimes called stacking or pyramiding of overtime). A “retail business” employer, however, gets to count the Sunday/holiday premium towards overtime pay. So, for a retailer in the example above, 40 hours at straight-time and 10 hours at time-and-a-half would cover both the Sunday work and the overtime.1 There is an obvious advantage, therefore, for a...



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