Vermont Minimum Wage Law

August 7th, 2006 Posted by Nicole

When it comes to the Minimum Wage Law in the U.S., I found that many states have very different minimums. The Federal government creates a set of guidelines and a basic minimum wage law under which each state must comply. However, the major difference between the states is the minimum that the individual workers choose to adopt.

In Vermont, the basic minimum pay rate per hour is $7.25 for a 40-hour workweek. This rate is much higher than many other states and is higher than the Federal government.

In Vermont, the state overtime pay is not put into effect very often because so many types of establishment and employment are exempt, such as retail and service, seasonal amusement and recreation, hotels, motels, restaurants, and transportation employees to whom the Federal (FLSA) overtime provision does not apply.

Beginning on January 1, 2007 and on each subsequent January 1 thereafter, Vermont’s minimum wage rate will be increased by five percent or the percentage of the Consumer Price Index or city average and is not seasonally adjusted. The increase is put in place to account for national inflation and to ensure that workers in the state of Vermont can maintain a steady income that is higher than a living wage.

The major purpose of the minimum wage is to help all employees, regardless of skill set or employment, earn an income that can help them support themselves. While the majority of the states within the U.S. have the same minimum wage as the national government, many states also have special provisions for the type and age of the workers. For example, some states say that minors can earn a lesser wage than adults.

Additionally, there are some states with no minimum wage law and one state (Colorado) with a minimum wage that is below the Federal guidelines. Vermont, however, along with many other Northeastern states has a high minimum wage that helps workers earn generous incomes.

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