In a vote Wednesday, the Rhode Island General Assembly passed legislation to raise the state’s minimum wage from $15 to $17 by Jan. 1, 2027. Under the bill, wage earners would see a $1 bump to $16 next year and then another to $17 the following January. The legislation now heads to Gov. Dan McKee’s desk.
Supporters argue low-wage workers have struggled to keep pace with rising living costs. Rep. David Bennett (D‑Warwick/Cranston) said the steady increases offer “predictable, stable” planning for businesses while maintaining a “livable wage” for Rhode Islanders.
But critics caution that steep minimum wages can carry unintended consequences. A University of Washington study of Seattle’s $13 law found low-wage workers lost 9% of their hours — equating to an average income loss of $125 per month in 2016. Historical research from New Jersey’s fast-food sector showed employment dropped about 4.6% after its minimum wage rose. And economists led by Joseph Sabia found a 20–22% reduction in jobs among less-skilled New York workers following a wage hike there.
Small-business owners often bear the brunt. U.K. data released in March show small firms cut jobs — especially among workers under 25 — after national wage increases, with youth jobs dropping nearly 2% in one month . An Oxford study using U.S. data revealed independent restaurants and retailers reduced low-hour roles — typically those under $4,000 annual income — by about 1.5 positions per business. Such entry-level positions are often the first casualties when labor costs spike sharply.
Economists remain divided. Meta‑analyses by the Economic Policy Institute suggest large-scale job losses are rare. Advocates in Congress estimate a federal $17 wage by 2030 could raise $70 billion annually in wages
But others caution that steep wage mandates may prompt automation, reduce youth hiring, or drive businesses out of state.
Governor McKee must weigh these trade‑offs. Will workers benefit from higher pay—or lose the chance to gain job experience?
Like Newport Buzz? We depend on the generosity of readers like you who support us, to help with our mission to keep you informed and entertained with local, independent news and content. We truly appreciate your trust and support!
