Bill > S1113

This bill amends Rhode Island labor law to prohibit contractors and subcontractors from providing cash payments in lieu of retirement or pension benefits for employees who have been employed for more than 90 days, starting July 1, 2025. Specifically, the legislation requires that instead of giving employees cash equivalent to retirement or pension benefits, employers must actually purchase these benefits from a licensed third-party provider. Employers will be required to provide proof of purchase to employees and their bargaining agents, with potential civil penalties of $1,000 to $3,000 for non-compliance. The bill includes an exemption for employees working 90 days or less and those receiving benefits through alternative means like military service or as dependents. This change aims to ensure workers receive actual retirement and pension benefits rather than cash substitutes, potentially providing more long-term financial security for employees in public works and transportation sectors. The bill will take effect immediately upon passage.

Labor and Employment

https://status.rilegislature.gov/