Applies to: Employers with Employees in RI
Effective: August 17, 2025
Quick Look
- For purposes of Sunday and/or holiday premium pay, Rhode Island now defines “retail business” as establishments primarily selling goods or services directly to the general public at the end of the distribution chain.
- The DLT can no longer grant new exemptions from Sunday/holiday premium pay requirements.
DISCUSSION
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. Key aspects of the new rules are summarized below.
“RETAIL BUSINESS” DEFINITION
The rules previously were silent on the definition of a “retail business” for purposes of the state’s overtime and premium pay law, which allows retail business employers to count Sunday and/or holiday premiums toward overtime pay. The new regulations provide some clarity by defining “retail business” as “an establishment engaged primarily in the sale of goods or services directly to the general public. It operates at the end of the distribution chain, selling in small quantities to the ultimate consumer in a manner consistent with other consumer goods and services.”
Excluded from the definition is any business that engages “primarily in resale, wholesale transactions, or manufacturing;” “businesses that primarily prepare and sell food for immediate consumption,” and “wholesale operations that serve other businesses rather than individual consumers.”
NO NEW SUNDAY/HOLIDAY PREMIUM EXEMPTIONS
Prior to 2021, Rhode Island law permitted the DLT to issue exemptions from the Sunday/holiday premium pay requirements, upon request by a “class of employers.” However, the Rhode Island legislature eliminated the DLT’s authority to provide new exemptions in 2021. Consequently, the DLT’s new regulations delete the former procedures for requesting Sunday/holiday exemptions.
ACTION ITEMS
- Update payroll practices, as necessary.
- Have appropriate personnel trained on premium pay requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that OneDigital is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 OneDigital
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