Rhode Island — Hiring & Onboarding

Rhode Island's Fair Employment Practices Act (FEPA) applies to employers with four or more employees. This threshold is substantially lower than the fifteen-employee minimum for Title VII coverage and means that small employers in Rhode Island face state anti-discrimination obligations during hiring even when federal law does not apply. "Employer" includes the state and all political subdivisions, any person employing four or more individuals in Rhode Island, and any person acting in the interest of an employer.

Source: R.I. Gen. Laws § 28-5-6(6)

Rhode Island requires all employers doing business in the state to report newly hired and rehired employees to the Rhode Island New Hire Registry within 14 days of the employee's date of hire. The date of hire is defined as the date the employee commences employment, but no later than the first day for which the employee is eligible for compensation. This obligation derives from federal welfare-reform legislation (the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) and is codified in Rhode Island General Laws Chapter 15-24, "Reporting of New Hires."

Who must be reported. An "employee" is a natural person who performs labor in Rhode Island and is employed by a Rhode Island employer for compensation for whom the employer withholds federal or state income tax. Employers must report all employees who reside or work in Rhode Island to whom they anticipate paying earnings, including:

• Temporary and seasonal employees, even if they work only one day;
• Part-time employees; and
• Rehires—any employee returning after a lapse in pay of 60 consecutive days or more for any reason (maternity leave, family leave, or other unpaid leave).

Independent contractors for whom the employer does not withhold income tax are not reportable as new hires under this requirement. The employer must decide whether an employer-employee relationship exists; generally, if work is performed based on a specific contract and the payor issues a Form 1099-MISC rather than a W-2, the worker is not reportable.

Reporting methods and timing. Employers may report by mailing or faxing a copy of the employee's Form W-4, or by submitting the information electronically through the Rhode Island New Hire Reporting Directory website at https://ri-newhire.com. The 14-day deadline applies if the employer reports on paper (W-4 or equivalent). If reporting electronically or magnetically, the employer must submit two monthly transmissions (if necessary) not less than 12 days and not more than 16 days apart.

The report must include:

• The employer's name, address, and federal employer identification number (FEIN);
• The employee's name, address, Social Security number, and date of birth;
• Information regarding whether the employer has employee dependent health care coverage available and the date on which the employee may qualify for coverage; and
• The address to which income-withholding orders and garnishments should be sent.

Multi-state employers. An employer with employees in multiple states may either (1) report new hires to each state in which it does business, or (2) designate one state where it has employees working and report all new hires from every state to that one state, provided the reporting is done electronically or magnetically and the employer has notified the U.S. Department of Health and Human Services of its designation.

Penalties. An employer who fails to report a new hire as required is liable for a civil penalty of $20 for each violation, to be assessed by the Rhode Island Department of Administration. If the employer is shown to have conspired with the employee to avoid reporting, a civil penalty of $500 may be assessed, with liability joint and several between the employer and the employee.

Purpose. The state directory of new hires is matched against child-support enforcement records; within two business days after a new-hire report is entered into the directory, the Department of Administration forwards a wage-withholding order to the employer if the employee owes child support (unless the employee's income is not subject to withholding under R.I. Gen. Laws § 15-5-24). New hire reporting thus accelerates child-support collection, helps locate non-custodial parents who frequently change jobs, and reduces welfare, unemployment insurance, and workers' compensation fraud.

Source: Rhode Island Office of Child Support Services – New Hire Reporting