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.

Facts reviewed against primary sources in September 2026

$16.00/hr
Minimum wage (2026, $17 in 2027)
Since 1942
Mandatory TDI program (oldest in US)
Up to 5.99%
State income tax (top rate)

Rhode Island by the Numbers

Key Rhode Island employment law figures: requirement, current value, and detail.
Requirement Rhode Island Detail
Minimum wage $16.00/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 RIGL 28-14-4: final wages are due on the next regular payday, and where the employer closes or permanently moves a business operation, within 24 hours of the 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 8 weeks of paid leave from January 1, 2026 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 Rhode Island-Compliant Today
Key Requirements
  • 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 8 weeks of paid leave from January 1, 2026 (7 weeks in 2025) 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 $16.00/hr minimum wage in 2026 and automatically updates to $17.00/hr on January 1, 2027. 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' Comp From Your First Rhode Island Hire

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.

Rhode Island Benefits and Next-Payday Final Pay

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 - $16.00/hr in 2026, $17.00 in 2027
Workers' comp enrollment confirmed (1+ employee)
This Week's Payroll
$16.00
Base/hr
$24.00
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 $16.00/hr (2026, rising to $17.00 in 2027), graduated income tax up to 5.99%, SUTA on the first $30,800 of wages (1.21% new employer rate including the 0.21% Job Development Assessment), 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 $16.00/hr from January 1, 2026 and rises to $17.00/hr on January 1, 2027. WorkGenius applies the updated rate automatically.
  • One Weekly Rhode Island 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.

Pay Transparency (RIGL 28-6-22)

Range on request and at hire

Since January 1, 2023, Rhode Island employers must provide the wage range for a position on an applicant's or employee's request, before discussing compensation, at hire, and when an employee moves to a new position. It is request-and-event driven rather than a posting mandate, which makes it easy to miss. WorkGenius supplies a compliant range at each of those points.

TDI and TCI Contributions

1.1% on $100,000 (2026)

The figures behind Rhode Island's signature programme. For 2026 the employee contribution rate is 1.1%, down from 1.3% in 2025, on a taxable wage base of $100,000, up from $89,200. TDI and TCI are funded entirely by employee contributions - Rhode Island is unusual in that employers pay nothing into it. WorkGenius withholds and remits on every pay run.

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 8 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 $16.00/hr in 2026 and increases to $17.00/hr on January 1, 2027. Rhode Island has been on a multi-year minimum wage increase schedule and may pursue further increases through future legislation.

Non-Competes: Void for Non-Exempt Workers

Enforceable, reasonableness standard

The Rhode Island Noncompetition Agreement Act, RIGL 28-59, makes non-competes unenforceable against employees classified as non-exempt under the FLSA, undergraduate or graduate student interns, employees aged 18 or under, and low-wage employees. Outside those categories 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 Rhode Island's classification and compliance rules. We prepare compliant contracts and payroll setup.

3

Workers Are Employed

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

4

We Handle Ongoing

Payroll runs on Rhode Island rules. 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. Legislation signed in 2024 (S 2121) raised it to 7 weeks in 2025 and 8 weeks from January 1, 2026, and lifted the dependent allowance from $10 to $20 a week per dependent under 18. It provides up to 8 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 $16.00/hr in 2026. It increases to $17.00/hr on January 1, 2027. 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?

It does. The Healthy and Safe Families and Workplaces Act, RIGL 28-57, has required sick and safe leave since 2018. Employers with 18 or more employees must provide it paid; employers with 17 or fewer must provide the same accrual unpaid. Employees accrue 1 hour for every 35 hours worked, up to 40 hours a year, and accrual counts all paid hours including holiday, personal, sick and vacation time. That sits alongside the TDI program, which covers disability and pregnancy, and TCI, which 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?

Only for some workers. The Rhode Island Noncompetition Agreement Act, RIGL 28-59, in force since 2020, makes a non-compete unenforceable against an employee who is non-exempt under the FLSA, an undergraduate or graduate student in an internship or short-term role, an employee aged 18 or under, or a low-wage employee. For everyone else, courts apply a reasonableness standard, examining duration, geographic scope, and the type of restricted activity, and may modify overly broad provisions. WorkGenius screens every Rhode Island hire against the RIGL 28-59 categories and drafts only where a covenant is available.

Explore other state EOR guides

Related compliance concepts

Employer of Record

Ready to Employ in Rhode Island Compliantly?

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