| Update Applicable to: | Effective Date |
| All Covered Employers | August 17, 2025 |
What happened?
On August 17, 2025, Rhode Island implemented new regulations defining “retail business” for purposes of Sunday and holiday premium pay.
Overview:
Under Rhode Island law, employees who work on Sundays or holidays must receive 1.5 times their regular rate of pay. For retail businesses, these hours are excluded from overtime calculations, meaning they do not count toward the 40-hour threshold for overtime.
To clarify which employers qualify for this treatment, the state now defines a “retail business” as:
- An establishment primarily engaged in selling goods or services directly to the general public.
- Operating at the end of the distribution chain, selling in small quantities to the ultimate consumer.
- Not primarily involved in resale, wholesale transactions, or manufacturing.
- Including direct-to-consumer sales consistent with industry standards.
Excluded from this definition are:
- Businesses that primarily prepare and sell food for immediate consumption (e.g., restaurants).
- Wholesale operations serving other businesses rather than individual consumers.
Employers must ensure compliance by reviewing their business classification and adjusting pay practices accordingly. The new regulations also eliminate the previous process for requesting exemptions, though existing exemptions remain valid.
Source References
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