Rhode Island has joined the growing ranks of states that have
enacted a sweeping pay equity statute. The Rhode Island law, which
takes effect on January 1, 2023, amends the Rhode Island Equal Pay
Law and places significant new burdens on both large and small
businesses. The law seeks to "combat wage discrimination"
by "strengthening and closing gaps in existing wage
discrimination laws," and does so by imposing new requirements
on employers and essentially deems employers "guilty until
proven innocent" when it comes to wage disparities.
Pay equity is a method of eliminating discrimination when
establishing and maintaining wages. Although federal law has sought
to eliminate the pay gap between genders, states have enacted their
own laws, often adding disclosure requirements and, in some cases,
encouraging employers to conduct pay audits. However, unlike many
states with pay equity laws – which typically prohibit wage
differentials based on sex only – Rhode Island's new