5 New Rhode Island State Laws Taking Effect on January 1st

Here are the five most significant Rhode Island laws taking effect on JJanuary 1 2026.

1. The $16.00 Minimum Wage Hike

Rhode Island continues its multi-year push toward a more livable wage. Following the transition to $15.00 in 2025, the state is taking another step forward on New Year's Day.

• The Increase: The statewide minimum wage officially jumps from $15.00 to $16.00 per hour.
• Future Planning: This is part of a multi-year plan; the rate is scheduled to rise again to $17.00 on JJanuary 1 2027.
• The Impact: State officials estimate that this increase will directly benefit roughly 50,000 workers across the state, helping households keep pace with rising housing and grocery costs.

2. The Rhode Island Data Transparency and Privacy Protection Act (RIDTPPA)

In a significant win for digital consumer rights, Rhode Island becomes one of the latest states to grant residents considerable control over their personal information online.

• Your New Rights: Residents now have the legal right to access, correct, and delete personal data that companies collect about them.
• The "Opt-Out": For the first time, you can officially opt out of the sale of your personal data or its use for targeted advertising.
• Business Accountability: For-profit entities that process the data of at least 35,000 Rhode Island residents must now be transparent about who they share your information with.

3. The Medical Debt Credit Shield

Starting JJanuary 1 a new "shield" law goes into effect to ensure that a health crisis doesn't lead to financial ruin. This law targets explicitly how medical debt affects your creditworthiness.

• Credit Reporting Ban: Debt collectors and healthcare providers are now strictly prohibited from reporting medical debt to credit bureaus.
• Garnishment Protections: The law also bars garnishment of wages or attachment of liens on a primary residence for unpaid medical bills.
• The Goal: By removing medical debt from credit reports, the state ensures that a single hospital stay doesn't prevent a resident from qualifying for a car loan, an apartment, or a mortgage.

4. "New Hire" Wage Transparency Mandate

Looking for a new job in Rhode Island is about to become a much more transparent process. A significant update to the State labor laws changes the onboarding experience for all new employees.

• The Single Notice: At the start of employment, all employers must provide a single written document containing the key terms of employment.
• Mandatory Disclosures: This notice must include the rate of pay, pay schedule, standard deductions, and clear information on the employer's leave policies.
• Legal Protections: Employers must keep a signed copy of this notice to prevent "wage theft" or misunderstandings about compensation during the first few weeks of a new job.

5. Whole Home Short-Term Rental Tax & Hotel Tax Increase

As part of the state's latest fiscal plan, new taxes on travel and lodging are being implemented to fund municipal infrastructure and housing programs.

• Hotel Tax Hike: The local hotel tax rate will increase from 1% to 2%.
• Whole Home Tax: A brand-new 5% tax is being imposed on "whole home" short-term rentals (renting out an entire house or condo on major platforms).
• The Split: The revenue generated is earmarked for the specific municipalities where the rentals occur, as well as for statewide tourism development and support for local housing initiatives.