Overview of Vermont's Minimum Wage Requirements
As of January 1, 2024, the minimum wage in the state of Vermont is $13.67 per hour, marking an increase of $0.49 from the previous minimum wage of $13.18. This increase also impacts the minimum wage for tipped employees, which is 50% of the full minimum wage. Consequently, the tipped minimum wage has risen from $6.59 to $6.84 per hour. Vermont law permits employers to pay tipped employees a lower hourly rate, provided the employee receives tips equal to or greater than the standard minimum wage during a given shift. If the employee does not receive enough tips to equal the standard minimum wage per hour during a workweek, the employer is required to pay the difference.
The minimum wage and tipped minimum wage are adjusted annually in accordance with Vermont law and take effect at the start of the new year. This system of indexing began in 2007, with additional increases enacted in 2014. The minimum wage in Vermont is increased annually by either 5% or the Consumer Price Index (CPI), whichever is smaller. It's important to note that the minimum wage cannot decrease.
Understanding Local Minimum Wage Variations
The minimum wage requirements in Vermont are consistent across the state, including in Chittenden County, Rutland County, Washington County, Windsor County, Franklin County, Burlington, South Burlington, Rutland, Barre, and Essex Junction. As of January 1, 2024, the minimum wage in these areas is $13.67 per hour, with a tipped minimum wage of $6.84 per hour.
However, it's critical to note that the minimum wage does not meet the living wage as determined by state analysts. For example, the “Basic Needs Budget and Livable Wage” report indicates that a living wage in Vermont for those with a partner and no children was $13.39 per hour in 2020. For a single parent with two children living in Chittenden County, the living wage would have needed to be $41.78 an hour in 2020 to make ends meet.
Minimum Wage Eligibility and Exemptions
In Vermont, the minimum wage law applies to employers who employ two or more employees. However, there are certain exemptions to this rule. Exemptions to the Vermont minimum wage law include full-time high school students, agriculture workers, taxi cab drivers, outside salespersons, newspaper or advertisement home delivery persons, persons employed in the activities of a publicly supported non-profit organization (except laundry employees and nurses’ aides or practical nurses), a person employed in a domestic service in or about a private home, and a person employed by the United States federal government.
Although full-time high school students are exempt from Vermont’s minimum wage requirement, federal law provides for a minimum compensation for these students. If the federal minimum wage becomes higher than the Vermont minimum wage, the Vermont minimum wage will increase to the federal rate, effective the same day.
Minimum Wage Considerations and Compliance Tips
Food business employers in Vermont must adhere to the state's minimum wage laws and ensure that they are in compliance with all relevant regulations. The minimum wage in Vermont is $13.67 per hour worked, and $6.84 per hour for tipped employees. This means that employers must pay their employees at least these rates to ensure compliance with state law.
Employers should also be aware that federal wage and hour laws may differ from Vermont law. For more information, employers can contact the U.S. Department of Labor at (603) 666-7716 regarding their rights and obligations under the Fair Labor Standards Act.
In addition to these wage considerations, employers are required to display updated workplace posters, including the 2024 Minimum Wage poster. For any wage-related complaints, employees can submit a wage claim or complaint through the Wage & Hour Program.
FAQs
- What is the current minimum wage in Vermont? As of January 1, 2024, the minimum wage in Vermont is $13.67 per hour.
- What is the minimum wage for tipped employees in Vermont? The minimum wage for tipped employees in Vermont is $6.84 per hour as of January 1, 2024.
- Are there any exemptions to the minimum wage in Vermont? Yes, there are several exemptions including full-time high school students, agriculture workers, taxi cab drivers, outside salespersons, and more.
- What are the compliance requirements for employers regarding minimum wage in Vermont? Employers must pay their employees at least the minimum wage, display updated workplace posters, and adhere to both state and federal wage and hour laws.
Information Source Links
- Vermont Wage & Hour Laws
- U.S. Department of Labor
- Minimum Wage 2024 Poster
- Submit a Wage Claim or Complaint
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