Every year, Rhode Island legislators question (in a non-ironic way) why the state is awarded an abysmal ranking for business friendliness. Next year state budget writers should earmark enough money for lawmakers to buy mirrors so they can see who is responsible for the state’s poor marks.

>>> WATCH NFIB Rhode Island’s Virtual Event “What Employers Need to Know Following the Recent Legislative Session” HERE.

This session added to the misery with additional labor mandates, fees, labor cost hikes, all while labor activists checked off items from their wish lists yet again.  Despite warnings from NFIB and other members of the business community, the following items advanced this session:

• Legislation hiking the state minimum wage to $16 per hour in 2026, then $17 in 2027.
• A bill limiting employers’ free speech rights prohibiting them from talking to their employees about the impact of unionization. This law is facing court challenges in other states.
• A 2-cent increase to the state fuel tax in the FY26 budget, along with taxes on parking spaces, a real estate conveyance tax, and a tax on health insurers that will be passed to ratepayers.
• Mandating changing stations in bathrooms open to the public that must accommodate individuals weighing up to 350 lbs.
• Legislation mandating an employer provide workers at the start of employment with notification of rate of pay, frequency of pay, time off policies, list of deductions, pay periods, etch, or face fines.

Several other pieces of legislation ended up passing a single chamber but did not become law. Those bills include:

• Limits on the number of automated checkout lanes. (Passed the Senate)
• Bills that micromanage how businesses run in hot and cold temperatures, even requiring employers provide workers with sunscreen and cooling vests. (Passed the Senate)
• Adding holidays to the Sunday/Holiday premium pay laws, a policy that only occurs in one state…Rhode Island. (Different bills passed the House and Senate)

Fortunately, legislation calling for an income tax surcharge on earnings over $625,000 that would have impacted pass-through businesses failed to move forward. Rhode Island lawmakers seemed to double-down on bad policy this session further solidifying their worst in the nation business friendliness rankings. Perhaps the most chilling part is that the damage may not be done yet in 2025, as the threat of a special session in the Fall may still be a reality. NFIB will continue to keep you posted as information becomes available.