As you know, Rhode Island law requires that employees who work on Sundays and holidays must receive one and one-half times (1.5x) the regular rate of pay. This is, essentially, a separate and additional type of premium pay from overtime.
There are special rules for retail businesses, however. For employees of a retail business, hours worked on Sunday or a holiday, or both, are excluded from the calculation of overtime pay. That is, they do not count toward the overtime threshold.
Now, the state has defined the previously undefined term “retail business.” A “retail business” can be defined as an establishment engaged primarily in the sale of goods or services directly to the general public. It operates at the end of the distribution chain, selling in small quantities to the ultimate consumer in a manner consistent with other consumer goods and services. A retail business does not engage primarily in resale, wholesale transactions, or manufacturing but instead provides products or services recognized as retail within the particular industry. This definition includes direct-to-consumer sales and aligns with the Merriam-Webster definition of retail as “to sell small quantities directly to the ultimate consumer.” Excluded from this definition are businesses that primarily prepare and sell food for immediate consumption, as well as wholesale operations that serve other businesses rather than individual consumers.
Visit the state’s Labor Standards FAQ, Overtime & Holiday Pay page for more information.