Welcome back to our ongoing series breaking down the new laws coming out of the Rhode Island State House. As we head into the summer peak, it’s a good time to look at some of the significant bills signed into law. This segment focuses on your wallet, with major changes impacting consumer lending, how you get paid, and the cost of prescription drugs.

First up is a landmark shift in consumer finance. For years, the debate has raged over so-called “payday loans”—short-term, high-interest loans that critics argue trap vulnerable borrowers in cycles of debt. With the passage of H5042, the state has effectively ended the practice. The bill strikes the legal framework for deferred-deposit transactions, making these types of loans illegal in Rhode Island. This won’t happen overnight; the law gives the industry time to adjust, with an effective date of January 1, 2027. For consumers, this means a controversial financial product will soon disappear from the marketplace.

Next, a new law aims to bring much-needed clarity to your paycheck. If you’ve ever squinted at your pay stub wondering what all the deductions meant or how your hours were calculated, S0070 is for you. Effective immediately, employers must now provide a much more detailed statement of earnings. This includes not just your gross pay, but total hours worked, all applicable hourly rates, and a clear, itemized list of every deduction. Employers must also provide a detailed notice at the start of employment outlining pay rates, leave policies, and employment status. We believe this change empowers workers to better track their earnings and spot potential errors or wage theft.

Finally, the legislature took aim at a complex but critical aspect of healthcare affordability with the “Defending Affordable Prescription Drug Costs Act.” This law, S0114, protects the federal 340B drug pricing program. In simple terms, this program allows community health centers and hospitals serving low-income communities to buy prescription drugs at a significant discount. The problem? Some insurers and pharmacy benefit managers (PBMs) were reducing payments to these clinics, essentially clawing back the savings intended to support patient care. This new law makes that illegal, prohibiting discriminatory reimbursement rates and ensuring the financial benefits of the 340B program stay with the safety-net providers and the communities they serve.

These are just a few of the many changes enacted this session. From personal finance to worker rights, the legislative landscape is shifting. Be sure to check back with us as we continue to unpack the new laws that will affect every Rhode Islander.