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Saturday, May 23, 2026

Rhode Island's Payment of Wages Act Imposes Felony Penalties on ... - SHRM

Effective Jan. 1, 2024, the Rhode Island Payment of Wages Act will make a "knowing and willful" wage and hour violation punishable as a criminal felony. Should an employer or its agent engage in such a violation regarding a failure to pay wages of more than $1,500 or misclassify workers as independent contractors in the construction industry, the employer may be criminally prosecuted and may face imprisonment for up to three years and/or a fine of up to $5,000.

Pursuant to the Payment of Wages Act, as amended, an employer's agent or officer could face a felony, imprisonment, and/or a fine if it fails to pay wages owed and/or vacation pay to any eligible employee who separates from employment. Moreover, an employer may face the same criminal penalty if it fails to pay wages and benefits owed within 24 hours of the time of separation, if an employer is liquidating the business, merging, or removing the business out of state.

Other wage violations that could result in a criminal penalty include an employer's failure to pay wages to a family member of a deceased employee within 30 days of death and failure to pay the full monetary amount lawfully owed to an employee on the next regular payday.

Misclassification of Employees

The amendment to the law penalizes employers in the construction industry that misclassify workers as independent contractors. Employers in other industries will be liable for a civil penalty for each misclassified employee, where the first offense results...



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