Vermont Minimum Wage Laws

Vermont Minimum Wage Laws




Minimum wage

Vermont’s current minimum wage is $10.00.

Vermont’s minimum wage will increase to $10.50 on January 1, 2018. VT Statute 21-384(a)

For the year beginning January 1, 2019 and every year thereafter, Vermont minimum wage laws will require an annual review of its minimum wage. The minimum wage must be increased by the smaller of the following:

  • 5 percent; or
  • the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency for the 12 months preceding the previous September 1.

The minimum wage may not be decreased and must be rounded to the nearest $0.01. Any change to the minimum wage takes effect on January 1 of the following year. VT Statute 21-384(a)

Vermont employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.

If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. In most instances in Vermont, the Vermont minimum wage will apply as it generally guarantees a higher wage rate for employees than federal law.





Tip minimum wage

Vermont’s minimum wage for tipped employees is $4.80.

Vermont minimum wage laws require the tipped minimum wage to be adjusted each year by the same rate the standard minimum wage is adjusted.

Vermont defines tips as sums of money gratuitously and voluntarily left by customers for service or tipped employees for direct and personal service at a hotel, motel, tourist place, or restaurant. It does not include mandatory service charges. Employers may only pay the tipped minimum wage to service or tipped employees. Service or tipped employees are employees in hotels, motels, tourist places, and restaurants who customarily and regularly receive more than $120 per month in tips. If an employer chooses to pay the tipped minimum wage, it must also ensure that the tipped employees receive the standard minimum wage when tipped wages earned are combined with tips received. If a tipped employee is not paid the standard minimum wage when tipped wages earned are combined with tips received, the employer must pay the employee the difference. VT Statute 21-384(a); VT Rules 24-090-003.



Tip pooling and sharing

Vermont minimum wage laws does not address whether an employer may require employees to participate in tip pooling or tip sharing arrangements.



Subminimum wage

Employees with disabilities

Vermont minimum wage laws do not allow employers to pay employees with disabilities a subminimum wage rate that is less than the standard minimum wage.



Trainees

Vermont minimum wage laws do not allow employers to pay trainees a subminimum wage rate that is less than the standard minimum wage.



Apprentices

Vermont minimum wage laws do not allow employers to pay apprentices a subminimum wage rate that is less than the standard minimum wage.



Learners

Vermont minimum wage laws do not allow employers to pay learners a subminimum wage rate that is less than the standard minimum wage.



Student learners

Vermont minimum wage laws do not allow employers to pay student learners a subminimum wage rate that is less than the standard minimum wage.



Student workers

Vermont minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage.