Unpaid Wage Claims in Rhode Island

Background

“Compensation is defined as salary or wages earned and paid for the performance of duties for covered employment.” (See Francis v. Ret. Bd. of the Employees' Ret. Sys. of R.I., C.A. No. PC 07-6005, at *1 (R.I. Super. Jan. 4, 2013).)

“Pursuant to subsection 28-14-4, this statute allows an employee [who] separates or is separated from the payroll of an employer to file a claim for unpaid wages or compensation.” (See Div. Resource Ctr. V. RI Dept. of Labor DIV., C.A No. PC-2009-3536, at *8 (R.I. Super. Apr. 4, 2011).)

General Information for Complaints and Motions

“Section 28-14-4 reads, in pertinent part: whenever an employee separates or is separated from the payroll of an employer, the unpaid wages or compensation of the employee shall become due on the next regular payday and payable at the usual place of payment.” (See id.)

In general, compensation can be defined as "[remuneration and other benefits received in return for services rendered; esp., salary or wages." (See Black's Law Dictionary (11th ed. 2019); Faella v. Town of Johnston, C.A. No. PB-2010-0311, at *1 (R.I. Super. Aug. 22, 2019).)

It "consists of wages and benefits in return for services [and] [i]t is payment for work[i]f the work contracted for is not done, there is no obligation to pay. Conversely, employees who are aggrieved by failure to receive their wages can seek legal recourse.” (See id.)

Standard of Review and Burdens of Proof

“Pursuant to subsection 42-35-15, [a]ny person, . . . who has exhausted all administrative remedies available to him or her within [an] agency, and who is aggrieved by a final order in a contested case is entitled to judicial review by the Superior Court.” Div. Resource Ctr. V. RI Dept. of Labor DIV., C.A No. PC-2009-3536, at *8 (R.I. Super. Apr. 4, 2011).)

The Court "may affirm the decision of the agency or remand the case for further proceedings, or it may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are: (1) in violation of constitutional or statutory provisions.” (See id.)

“In reviewing an agency's decision, this Court is limited to an examination of the certified record in deciding whether the agency's decision is supported by substantial evidence.” (See id.)

“Substantial evidence has been defined as such relevant evidence that a reasonable mind might accept as adequate to support a conclusion, and means an amount more than a scintilla but less than a preponderance.” (See id.)

“Questions of law determined by the administrative agency are not binding upon [the Superior Court] and may be freely reviewed to determine the relevant law and its applicability to the facts presented in the record.” (See id.)

“Although this Court affords the factual findings of an administrative agency great deference, questions of law — including statutory interpretation — are reviewed de novo.” (See id.)

The Court’s Decisions

It is well settled that “the term, ‘wages,’ under the Payment of Wages Act means all amounts at which the labor or service rendered is recompensed, whether the amount is fixed or ascertained on a time, task, piece, commission basis, or other method of calculating the amount.” (See Japonica Partners v. State, 00-1393 (2004), C.A. Nos. 00-1393, 00-1603, at *1 (R.I. Super. May 7, 2004).)

It is also well settled that Section 24-14-1(4). Rhode Island General Law subsection 28-14-4(b) requires that "whenever an employee is separated from the payroll of an employer after completing at least one year of service, any vacation pay accrued by . . . company policy . . . shall become wages and payable in full or on a prorated basis with all other due wages on the next regular payday for the employee.” (See id.)