Bill > H5505

This bill amends Rhode Island labor law to prohibit contractors and subcontractors from providing cash payments in lieu of actual retirement or pension benefits for employees who have been employed for more than 90 days, starting July 1, 2025. Specifically, the bill requires that contractors and subcontractors must actually purchase retirement or pension benefits from a licensed third-party provider for employees who have worked longer than 90 days, rather than offering equivalent cash payments. The Department of Labor and Training can request proof that these benefits are being provided to eligible employees. The bill includes penalties for non-compliance, with potential civil penalties ranging from $1,000 to $3,000 per violation, and allows employees or their bargaining agents to pursue legal action if benefits are not properly secured. Employees working 90 days or less are exempt from this requirement. This legislation builds upon existing provisions in Rhode Island law that already require similar requirements for healthcare benefits, and is part of a broader effort to ensure workers receive actual, substantive employment benefits rather than equivalent cash compensation.

Labor and Employment

https://status.rilegislature.gov/