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Minimum Wage Hikes Harms Youth Job Creation

Minimum Wage Hikes Harms Youth Job Creation

August 1, 2025

Rhode Island is one of the few states that prohibits a teen/training wage to encourage youth jobs during the summer.

In the true irony, Governor Daniel McKee issued a statement on his signing the recently passed $17 minimum wage hike on the same day that state lawmakers crowed about their youth summer jobs in a Providence Journal article.  Research shows that higher minimum wages result in fewer job opportunities for younger and inexperienced workers.

Making matters worse in Rhode Island, it is the only state left with a remnant “Blue Law” requiring certain businesses pay premium time-and-a-half pay to workers on Sundays and holidays. That means premium pay of $24 per hour in 2026 and $25.50 in 2027. Legislation to phase this law out stalled out in the recent legislation session. NFIB pointed out that Massachusetts phased this law out in 2023 as their base wage rose to $15.

Additionally, Rhode Island is amongst the handful of states that prohibits a teen/training wage, allowing employers to pay a percentage of the minimum wage for a finite period to encourage youth jobs during the summer months.

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