Legal Question in Employment Law in Rhode Island

A primary question not addressed in the hypothetical is whether a collective bargaining agreement is applicable.

If not, then I would look first to any departmental rules or regulations that may bear upon the issue, then to municipal charter or ordinance. And whether you are a police officer or civilian employee of the department may make a difference.

For example, could a police officer's financial straights create an appearance of impropriety? Could it reasonably lead one to question the officer's character, at least in terms of financial responsibility? Might an officer try to curry favor with one to whom he or she owes money, or might the creditor feel intimidated by the police officer's position?

Absent agreement, rule, regulation or ordinance covering the circumstance, it seems to me that you may be just like any other employee at-will, in which case your employer can terminate you for any or no reason so long as the reason is not discriminatory or otherwise illegal (i.e. retaliation).

I suggest you find a good, local lawyer with whom you might build a relationship - many such lawyers would not even charge you to research such a question after learning what department is involved. And just like police officers, lawyers do come in handy when you need one!