Employer of Record · Rhode Island

Employer of Record in Rhode Island.
America's Oldest Disability Insurance. Mandatory.

Rhode Island has operated the United States' oldest mandatory temporary disability insurance program since 1942 — decades before most states considered the concept. Every Rhode Island employee is enrolled in TDI, and since 2014 the same contribution system also funds Temporary Caregiver Insurance (paid family leave). Both require mandatory employee payroll deductions on every paycheck. Providence is a growing technology and creative economy hub, and Rhode Island's minimum wage reaches $15/hr in January 2025. WorkGenius becomes your legal employer and manages every Rhode Island obligation from day one.

$14.00/hr
Minimum wage (2024, $15 in 2025)
Since 1942
Mandatory TDI program (oldest in US)
Up to 5.99%
State income tax (top rate)

Rhode Island by the Numbers

Minimum wage
$14.00/hr
Effective 2024; rising to $15.00/hr on January 1, 2025
State income tax
Up to 5.99%
Three graduated brackets: 3.75%, 4.75%, and 5.99%
TDI/TCI contributions
Mandatory (all employees)
All Rhode Island employees must contribute to the state's Temporary Disability Insurance and Temporary Caregiver Insurance programs via payroll deduction
Workers' compensation
Required (1+ employee)
Rhode Island requires workers' comp for all employers with at least one employee
Final paycheck
Next regular payday
Final wages are due on the next scheduled payday following separation
FEPA threshold
4+ employees
Rhode Island Fair Employment Practices Act covers employers with 4 or more employees
The Defining Law

Rhode Island TDI & TCI: Mandatory Paid Leave Contributions Since 1942

Rhode Island enacted the nation's first mandatory Temporary Disability Insurance (TDI) program in 1942 — providing partial wage replacement when an employee cannot work due to a non-work-related illness, injury, or pregnancy. The program is funded entirely by mandatory employee payroll contributions, not employer contributions. In 2014, Rhode Island expanded the system by adding Temporary Caregiver Insurance (TCI), which provides up to 6 weeks of paid leave for employees to bond with a newborn or newly adopted child, or to care for a seriously ill family member. TCI is funded through the same mandatory employee payroll contribution mechanism as TDI. Both programs are administered by the Rhode Island Department of Labor and Training. Every Rhode Island employer must withhold and remit TDI/TCI contributions from each employee's wages — there is no minimum employer size threshold, and no opt-out.

Get AB5-Compliant Today
The ABC Test
  • Rhode Island's TDI program, enacted in 1942, is the oldest mandatory state temporary disability insurance program in the US
  • TDI provides partial wage replacement when an employee cannot work due to non-work-related illness, injury, or pregnancy
  • Temporary Caregiver Insurance (TCI), added in 2014, provides up to 6 weeks of paid leave for bonding or family caregiving
  • Both programs are funded through mandatory employee payroll contributions withheld and remitted by the employer
  • There is no minimum employer headcount threshold — TDI/TCI contributions are required from the first Rhode Island hire
  • WorkGenius calculates and remits TDI/TCI contributions for every Rhode Island employee on every pay cycle
Rhode Island Coverage

What WorkGenius Handles for Rhode Island

Rhode Island's mandatory TDI/TCI contributions, $14 minimum wage (rising to $15 in 2025), FEPA anti-discrimination obligations, and workers' comp requirement apply from the first Rhode Island hire.

TDI & TCI Contribution Withholding

WorkGenius calculates Rhode Island TDI/TCI contribution amounts, withholds the correct amount from each employee's wages each pay period, and remits all contributions to the Rhode Island Department of Labor and Training on schedule.

Minimum Wage — $15 Update in 2025

WorkGenius applies Rhode Island's $14.00/hr minimum wage in 2024 and automatically updates to $15.00/hr on January 1, 2025. No manual intervention required.

Rhode Island FEPA Compliance

Rhode Island's Fair Employment Practices Act covers employers with 4 or more employees and prohibits discrimination based on race, color, religion, sex, sexual orientation, gender identity or expression, national origin, age (40+), disability, and — since the 2022 CROWN Act — natural hair texture and protective hairstyles. WorkGenius ensures all employment agreements are FEPA-compliant.

Workers' Compensation Coverage

Rhode Island requires workers' comp for all employers with at least one employee. WorkGenius maintains compliant coverage from the first Rhode Island hire and handles all claims administration.

Wage Payment Compliance

Rhode Island requires wages to be paid at regular intervals. WorkGenius manages pay frequency, delivers final pay on the next regular payday, and maintains required wage statements.

Benefits Administration & Termination

ACA-compliant health coverage, 401(k), and disability insurance enrolled and administered. Offboarding includes final pay on the next regular payday, COBRA administration, and TCI leave coordination.

Rhode Island Compliance Dashboard
3 workers · All compliant
Live
Rhode Island TDI/TCI Contribution Check
Passed
TDI/TCI payroll deductions active — mandatory employee contribution
Minimum wage rate confirmed — $14.00/hr in 2024, $15.00 in 2025
Workers' comp enrollment confirmed (1+ employee)
This Week's Payroll
$14.00
Base/hr
$21.00
OT rate (1.5×)
Auto
Calculated
Weekly invoice sent
Every Friday · All-in rate
Sent
Technology-Powered

How WorkGenius Handles Rhode Island EOR

Rhode Island has operated the oldest mandatory temporary disability insurance (TDI) program in the US since 1942, and added paid family leave (TCI) in 2014. Both require mandatory employee payroll deductions on every Rhode Island paycheck. WorkGenius handles TDI/TCI contribution withholding, minimum wage compliance, and payroll automatically on every cycle.

  • TDI & TCI — Mandatory Payroll Contributions
    Rhode Island's Temporary Disability Insurance and Temporary Caregiver Insurance programs require mandatory employee payroll deductions. WorkGenius calculates and remits TDI/TCI contributions for every Rhode Island employee on every cycle.
  • Rhode Island Payroll, Automatically
    Minimum wage at $14.00/hr (2024, rising to $15.00 in 2025), graduated income tax up to 5.99%, SUTA on the first $28,200 of wages, plus TDI/TCI withholding — all calculated and remitted on every pay cycle.
  • Minimum Wage Rising to $15 in 2025
    Rhode Island's minimum wage is $14.00/hr in 2024 and rises to $15.00/hr on January 1, 2025. WorkGenius applies the updated rate automatically.
  • One Weekly Invoice
    A single, transparent weekly invoice covering payroll, taxes, TDI/TCI contributions, benefits, and compliance. No surprises, no hidden fees.

Other Key Rhode Island Compliance Areas

Rhode Island consistently leads on worker protections — its TDI/TCI program has been mandatory for over 80 years, and its anti-discrimination statute covers employers with as few as 4 employees.

Temporary Disability Insurance (TDI) & Temporary Caregiver Insurance (TCI)

Mandatory since 1942

All Rhode Island employers must withhold employee TDI/TCI contributions. TDI provides partial wage replacement for non-work-related disability; TCI provides up to 6 weeks of paid leave for bonding or family caregiving. The nation's oldest such mandatory program, dating to 1942.

Rhode Island Fair Employment Practices Act

4-employee threshold

Covers employers with 4 or more employees. Prohibits discrimination based on race, color, religion, sex, sexual orientation, gender identity or expression, national origin, age (40+), disability, ancestry, and — since the 2022 CROWN Act — natural hair texture and protective hairstyles.

Minimum Wage — Rising to $15 in 2025

$15.00 effective Jan 2025

Rhode Island's minimum wage is $14.00/hr in 2024 and increases to $15.00/hr on January 1, 2025. Rhode Island has been on a multi-year minimum wage increase schedule and may pursue further increases through future legislation.

Non-Compete Agreements

Enforceable, reasonableness standard

Rhode Island courts enforce non-compete agreements under a reasonableness standard. Rhode Island has not enacted a statutory ban. Courts evaluate duration, geographic scope, and the nature of the restricted activity, and will modify overly broad provisions.

Simple Process

How It Works in Rhode Island

From first conversation to fully compliant employment — typically within days.

1

Tell Us What You Need

Workers, roles, locations, and start dates. We tailor the setup to your needs.

2

We Assess & Classify

Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.

3

Workers Are Employed

Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.

4

We Handle Ongoing

Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.

Rhode Island EOR: Common Questions

What is Rhode Island's TDI program and who pays for it?

Rhode Island's Temporary Disability Insurance program, enacted in 1942, is the oldest mandatory state temporary disability insurance system in the US. It provides partial wage replacement — typically around 60% of the employee's average weekly wage, up to a weekly maximum — when an employee cannot work due to a non-work-related illness, injury, or pregnancy. The program is funded entirely through mandatory employee payroll contributions — there is no employer contribution. Employers are responsible for withholding and remitting the employee's contributions each pay period. WorkGenius handles all TDI withholding and remittance for every Rhode Island employee.

What is Rhode Island's Temporary Caregiver Insurance (TCI)?

TCI, added in 2014, extended Rhode Island's existing TDI contribution system to fund paid family leave. It provides up to 6 weeks of paid leave per year for employees who need to bond with a newly born, adopted, or foster child, or to care for a family member with a serious health condition. Like TDI, TCI is funded through mandatory employee payroll contributions — no separate employer contribution is required. Eligible employees receive approximately 60% of their average weekly wage during TCI leave. WorkGenius withholds TCI contributions as part of the combined TDI/TCI contribution on each paycheck.

What is Rhode Island's minimum wage schedule?

Rhode Island's minimum wage is $14.00/hr in 2024. It increases to $15.00/hr on January 1, 2025. Rhode Island has been on a multi-year minimum wage increase schedule and may pursue further increases beyond $15/hr through future legislation. WorkGenius applies the current rate and automatically updates on each effective date.

What does Rhode Island's Fair Employment Practices Act cover?

Rhode Island's Fair Employment Practices Act (FEPA) covers employers with 4 or more employees — a lower threshold than federal Title VII's 15-employee minimum. It prohibits discrimination based on race, color, religion, sex, sexual orientation, gender identity or expression, national origin, age (40+), disability, and ancestry. Since the 2022 CROWN Act, FEPA also explicitly covers natural hair texture and protective hairstyles as part of race discrimination. The Rhode Island Commission for Human Rights handles administrative complaints.

Does Rhode Island have any other paid leave beyond TDI/TCI?

Rhode Island does not have a separate state paid sick leave law. The TDI program covers disability and pregnancy; TCI covers family bonding and caregiving leave. Rhode Island also has the Parental and Family Medical Leave Act, providing job-protected unpaid leave (up to 13 weeks over a 2-year period) for employers with 50 or more employees. TCI provides the paid leave component for qualifying events covered by that law.

Are non-compete agreements enforceable in Rhode Island?

Yes. Rhode Island courts enforce non-compete agreements under a reasonableness standard, examining duration, geographic scope, and the type of restricted activity. Rhode Island has not enacted a statutory ban or income-based threshold for non-competes. Courts may modify overly broad provisions. WorkGenius drafts non-compete provisions calibrated to Rhode Island's reasonableness standard.

Employer of Record

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