Rep. David A. Bennett is proposing a plan to raise Rhode Island’s minimum wage to $20 an hour by 2030, but critics are already questioning whether the move will help or hurt the state’s economy.
The bill, 2025-H 5029, lays out a gradual increase, starting at $16 on Jan. 1, 2026, and climbing by $1 each year until reaching $20 by Jan. 1, 2030. Bennett (D-Warwick, Cranston) says the hikes are essential to keeping up with the cost of living.
“This legislation will keep our minimum wage rising in a predictable, stable way that allows Rhode Island’s businesses to plan while giving our constituents livable wages,” Bennett said.
But some worry the plan could backfire. Small businesses already struggling with inflation and labor shortages might be forced to cut jobs, reduce hours, or even close their doors as they grapple with rising payroll costs.
While labor leaders like Patrick Crowley, president of the Rhode Island AFL-CIO, argue that regular increases boost economic security for workers and provide predictability for businesses, not everyone is convinced.
“If wages go up too fast, it can lead to layoffs, higher prices for consumers, or businesses deciding to relocate,” said one Newport business owner, who asked not to be named. “It’s a balancing act, and I’m not sure this plan strikes the right balance.”
Rhode Island’s minimum wage last rose to $15 on Jan. 1, 2025, matching Massachusetts. But Connecticut is already ahead, with a $16.35 minimum indexed to inflation. Proponents of Bennett’s bill argue the Ocean State needs to keep up, while skeptics question whether chasing regional wage competition is worth the risk to small businesses.
Bennett, who has championed every minimum wage increase in Rhode Island since 2012 when minimum wage was $7.40, insists the plan is sound. “We’ve done this before, and it’s worked,” he said.
The bill has been referred to the House Labor Committee for hearings. Will this be a win for workers—or a costly misstep for the state’s economy?
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