Rhode Island Termination Laws

Rhode Island termination laws are designed to keep the process of ending employment fair and straightforward. Whether the termination is due to job performance or broader business decisions, it’s important for both employers and employees to know their rights and responsibilities. Staying informed about these rules helps avoid unnecessary legal issues and ensures a clear path forward when parting ways in the workplace.

This Guide Covers

Legal Considerations for Termination in Rhode Island
At-Will Employment in Rhode Island
Lawful Termination in Rhode Island
Legal Protections During Termination in Rhode Island
Terminated Employee Benefits in Rhode Island
Layoffs in Rhode Island
Resignations in Rhode Island
Legal Cases Related to Wrongful Termination in Rhode Island

Legal Considerations for Termination in Rhode Island

When terminating an employee in Rhode Island, there are lawful considerations employers must understand and adhere to minimize the risk of legal challenges. The considerations include:

  • Anti-Discrimination Laws: Employers must avoid making termination decisions based on race, color, religion, sex, national origin, age, disability, or any other protected characteristics under Rhode Island and federal law. Discriminatory firings can lead to serious legal consequences.
  • Retaliation Protections: Employees cannot be fired for participating in protected activities, such as filing complaints, reporting safety concerns, or cooperating with investigations. Retaliatory termination violates both state and federal regulations and can result in lawsuits.
  • Final Pay Requirements: Rhode Island law mandates that terminated employees must receive their final paycheck, including any earned wages or unused vacation, by the next regular payday. Failure to meet this obligation could result in legal penalties.
  • WARN Act Compliance: Employers with 100 or more employees must provide advance notice under the Worker Adjustment and Retraining Notification (WARN) Act before mass layoffs or plant closures. Failing to comply can lead to fines and compensation owed to employees.
  • Medical Marijuana Protections: Rhode Island protects employees with medical marijuana cards. Employers cannot fire someone for being a cardholder unless the employee is impaired at work or if their position involves safety-sensitive duties.
  • Documentation and Recordkeeping: Under the Rhode Island Personnel Files Act, employers must maintain accurate personnel records and allow terminated employees access to review their files upon request. This can be important if disputes arise over the termination.
  • Additional Considerations: Rhode Island also prohibits using polygraphs or lie detector tests as a condition for employment or termination (R.I. Gen. Laws § 28-6.1-1). While written examinations that detect deception are allowed, they cannot be the primary basis for firing decisions. Employers must remain cautious when relying on these tests to avoid legal complications.

At-Will Employment in Rhode Island

What is At-Will Employment?

In the state of Rhode Island, the concept of at-will employment legally regulates the employer-employee relationship. This doctrine allows either the employer or the employee to end the employment at any time, with or without cause, and without advance notice, as long as the reason for termination is not illegal.

What are the Exceptions to At-Will Employment in Rhode Island?

Rhode Island is one of the few states that does not recognize any of the typical exceptions to at-will employment. This means the state does not adopt exceptions based on public policy, implied contracts, or the covenant of good faith and fair dealing. Employers can terminate employees for any reason, as long as it does not breach federal or state laws like anti-discrimination protections.

Employment Under Contract in Rhode Island

While most jobs in Rhode Island are at-will, an employment contract provides added job security by laying out specific terms. These contracts typically cover details like job duties, salary, benefits, and the conditions for termination. Unlike at-will employment, a contract may require employers to follow specific steps before ending the relationship, such as providing a valid reason for termination.

Employment contracts in Rhode Island can be written or verbal, but written agreements hold more weight in legal settings. They must also comply with state laws and public policies. Some contracts may include non-compete or confidentiality clauses, though Rhode Island has limitations on enforcing non-compete agreements. Having an employment contract helps both employers and employees by clearly defining expectations and responsibilities, offering a more structured and secure working arrangement.

Lawful Termination in Rhode Island

Legal Grounds for Termination in Rhode Island

Employers in Rhode Island can legally terminate employees based on certain valid grounds:

  • Performance Issues: Employees who consistently underperform, miss goals, or fail to meet job standards can be lawfully terminated. It’s important for employers to document poor performance and give feedback before making a final decision.
  • Misconduct: Employers can fire employees for misconduct, including lateness, insubordination, or violation of company policies. Severe offenses like theft or harassment often lead to immediate termination. Proper documentation strengthens the case.
  • Business Necessity: Layoffs due to restructuring, economic downturns, or operational changes are lawful. These terminations are based on business needs, not individual performance, but must comply with Rhode Island’s legal guidelines.

Read our detailed guide to firing employees in Rhode Island for further information.

How Do I File a Wrongful Termination Claim in Rhode Island?

Employees in Rhode Island who believe they were wrongfully terminated must first assess whether the termination violated legal protections, such as discrimination, retaliation, or breach of contract. It’s important to gather documentation like employment contracts, emails, and performance reviews that support the claim.

For discrimination-related claims, employees can file with the Rhode Island Commission for Human Rights (RICHR) or the Equal Employment Opportunity Commission (EEOC). It’s generally recommended to start with the RICHR, which can be done in person or online through their website. For federal claims, such as those involving workplace discrimination, employees can file directly with the EEOC. Filing deadlines range from 180 to 300 days, depending on the type of claim and the circumstances surrounding the termination.

Legal Protections During Termination in Rhode Island

Rhode Island has several state and federal laws designed to protect employees during the termination process. Employers need to be aware of these legal protections to ensure compliance and avoid potential lawsuits.

  • Rhode Island Fair Employment Practices Act: This state law prohibits employment discrimination based on race, color, religion, sex, sexual orientation, gender identity or expression, disability, age, or other protected characteristics. Under the Rhode Island Fair Employment Practices Act, employers are prohibited from firing employees on discriminatory grounds. Termination decisions must be based on legitimate business reasons unrelated to these protected factors.
  • Rhode Island Payment of Wages Act: The Rhode Island Payment of Wages Act is a state law that mandates that employers pay terminated employees all earned wages, including unused vacation or benefits, by the next scheduled payday or within a reasonable timeframe. This law ensures employees receive their rightful pay after termination, protecting their financial rights.
  • Rhode Island Personnel Files Act: The Rhode Island Personnel Files Act requires employers to maintain personnel records and provide terminated employees access to their files upon request. This act allows employees to review their records, which can be essential if disputes arise over the reasons for termination.
  • Rhode Island Mini-WARN Act: The Rhode Island Mini-WARN Act requires employers with 50 or more employees to provide advance notice of mass layoffs or plant closures. This act protects employees by ensuring they have enough time to prepare for job loss due to large-scale terminations.
  • Title VII of the Civil Rights Act of 1964: This federal law prohibits employers from terminating employees based on race, color, religion, sex, or national origin. Title VII of the Civil Rights Act applies to Rhode Island employers, protecting workers from discriminatory firing practices tied to these characteristics.
  • Age Discrimination in Employment Act: The Age Discrimination in Employment Act (ADEA) protects workers aged 40 or older from age-based discrimination. This federal law prohibits Rhode Island employers from terminating employees solely because of their age.
  • Americans with Disabilities Act: The Americans with Disabilities Act (ADA) protects employees with disabilities, requiring employers to provide reasonable accommodations. Employers cannot terminate someone due to their disability if they are capable of performing their job duties with accommodations.
  • Family and Medical Leave Act: The Family and Medical Leave Act (FMLA) grants eligible employees unpaid, job-protected leave for family or medical reasons. Rhode Island employers must reinstate employees returning from FMLA leave and cannot fire them for exercising their rights under this law.
  • Fair Labor Standards Act: The Fair Labor Standards Act (FLSA) mandates minimum wage, overtime pay, and child labor standards. Employers in Rhode Island must comply with the FLSA when terminating employees, including ensuring proper payment of final wages and adhering to wage regulations.
  • Medical Marijuana Protections: Under R.I. Gen. Laws § 21-28.6-4, Rhode Island protects employees who are registered medical marijuana cardholders from being terminated solely due to their status as a cardholder. However, employers may take action if the employee is under the influence at work or holds a safety-sensitive position.
  • Occupational Safety and Health Act of 1970: Employers cannot terminate employees for reporting unsafe work conditions or for participating in an investigation by the Occupational Safety and Health Administration (OSHA). The OSH Act prohibits retaliatory terminations in these situations, ensuring that employees can assert their rights to a safe workplace without fear of job loss.

Terminated Employee Benefits in Rhode Island

Employees terminated in Rhode Island may be entitled to certain benefits depending on the terms of their employment and the nature of their dismissal:

  • Final Paycheck: Rhode Island labor law mandates that employers provide terminated employees with their final paycheck, which includes any accrued wages, vacation time, or other benefits. This payment must be made on the next regularly scheduled payday.
  • Health Insurance Continuation: If an employee is terminated in Rhode Island and was enrolled in the employer’s group health insurance plan, they are entitled to continue their coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The terminated employee will receive a COBRA election notice detailing their rights and options to extend their current health insurance. The employee can maintain the same health benefits but will be responsible for covering the full premium, including the portion previously paid by the employer, plus a small administrative fee. This provides a temporary solution while they search for other employment or insurance options.
  • Unemployment Benefits: Terminated employees may be eligible to apply for unemployment benefits through the Rhode Island Department of Labor and Training (DLT). Eligibility depends on factors such as the employee’s work history, reasons for termination, and active job search efforts. Employers must provide employees with the necessary information to apply for these benefits.
  • Severance Pay: Rhode Island law does not require employers to provide severance pay. However, if a severance package is included in the employment contract or offered by the employer, the terms must be clearly outlined in a written agreement. This may include financial compensation, benefits continuation, or a release of claims.

Layoffs in Rhode Island

Layoffs in Rhode Island occur when businesses need to reduce their workforce due to financial challenges, restructuring, or closures. Unlike terminations based on employee performance, layoffs typically affect a group of employees and are driven by the employer’s business needs.

In Rhode Island, employers must follow both state and federal regulations regarding layoffs. If the employer meets certain thresholds, they must comply with the Rhode Island Worker Protection and Job Loss Notification Act and the federal Worker Adjustment and Retraining Notification (WARN) Act. 

These laws require employers with a certain number of employees to give a 60 days notice before conducting mass layoffs or plant closures. This notification helps affected employees prepare by allowing them to seek new employment or apply for retraining programs.

Employees affected by layoffs may also qualify for unemployment benefits through the Rhode Island Department of Labor and Training (DLT).

Resignations in Rhode Island

Resignations in Rhode Island can happen voluntarily or involuntarily, depending on the circumstances.

Voluntary Resignations

Employees in the state may decide to leave their position for a variety of reasons, such as pursuing a new opportunity, continuing their education, or handling personal matters. While there is no legal requirement to give advance notice unless specified in an employment contract or company policy, most employees provide notice out of professional courtesy.

Involuntary Resignations

Also known as constructive discharge, involuntary resignations occur when working conditions become intolerable to the point where a reasonable person would feel compelled to quit. In Rhode Island, employees who claim constructive discharge must show that the conditions were so unbearable that continuing in the job would not have been a reasonable option. If proven, employees may still be eligible for unemployment benefits under these circumstances.

Legal Cases Related to Wrongful Termination in Rhode Island

1. Chariho Furniture Settles Wrongful Termination Lawsuit for $220,000

The case Jennifer McQuaide v. Chariho Furniture Inc. exemplifies wrongful termination and sexual harassment in Rhode Island.

Jennifer McQuaide, a former sales manager, sued Chariho Furniture in 2002 after enduring repeated sexual harassment from co-owner Edward P. Smith. Despite reporting the harassment, no actions were taken, and after rejecting Smith’s advances, she was fired in retaliation. Following a lengthy legal battle, the jury awarded McQuaide $220,000 in compensatory and punitive damages in 2018. 

Key lessons from the case:

  • Employers must have clear policies and procedures for addressing workplace harassment. Failure to enforce these policies can lead to legal liability, especially if the harassment leads to wrongful termination.
  • Termination decisions based on retaliation for rejecting inappropriate behavior are unlawful and can lead to costly legal battles.
  • A hostile work environment can severely impact both employee well-being and company reputation. Addressing complaints promptly and ensuring a safe work environment can prevent legal consequences and protect the company from claims of wrongful termination.

2. Rhode Island Nail Salon Retaliatory Termination Lawsuit Settled for $753,000

The case Walsh v. New VIP Nail Spa involves retaliatory termination and wage violations in Rhode Island. The U.S. Department of Labor sued the nail salons and their owner, Steven Xingri Cao, for firing an employee who reported unsafe working conditions after being exposed to undiluted sanitizer. The employee filed an OSHA complaint, and Steven Xingri Cao retaliated by firing them and threatening another employee close to the fired individual.

The lawsuit also revealed that the salons failed to pay overtime wages, falsified work records, and coerced employees into signing false documents. Following investigations by the Occupational Safety and Health Administration (OSHA) and the Wage and Hour Division, a consent judgment was issued in 2024. Steven Xingri Cao and the nail salons agreed to pay $753,500 in back wages and damages to affected employees.

Key lessons from the case:

  • Retaliatory actions against employees who report unsafe conditions or raise wage concerns violate both the Occupational Safety and Health Act (OSH Act) and the Fair Labor Standards Act (FLSA). Employers must comply with these laws to prevent legal actions and penalties for wrongful termination.
  • Employers who fail to meet overtime payment requirements or falsify employee records face serious financial and legal consequences under the FLSA.
  • Businesses should provide anti-retaliation training to supervisors and management staff to avoid violations of the OSH Act and FLSA. Proper training can ensure complaints are addressed appropriately, avoiding wrongful termination claims and costly settlements.

Read more about Rhode Island Labor Laws in our in-depth guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.