labor lawAdivision of labor law center

The minimum wage in Vermont will increase by 15 cents from $7.53 to $7.68 on January 1, 2008.

Beginning in 2006, a Vermont law dictates annual increases to the state minimum wage.

The state minimum wage law requires that employees be paid 1.5 times their usual rate for overtime, over 40 hours per week. However, the state law has very, very limited applications since it excludes numerous industries including, amusement parks, retail, service industries, hotels, restaurants and the transportation industry.

Most employees in the state are entitled to overtime after 40 hours under federal law, the Fair Labor Standards Act of 1938.

Also on January 1, 2008 the state minimum wage for tipped employees increases from $3.65 to $3.72 per hour – an increase of 7 cents.

The state of Vermont exempts a number of workers from the minimum wage law. These include full-time high school students, agricultural workers, cab drivers, outside salespeople, newspaper delivery persons, executives, people employed in domestic service, and some employees of non-profit or publicly supported organizations.  Many, but not all, of these employees are entitled to compensation of at least $5.85 per hour under the federal minimum wage.

Under state law, an employee who is fired must receive his or her final paycheck within 72 hours. If a worker resigns, he or she must be paid on the next regular payday. If there is no established regular payday, they must be paid by the following Friday.

The Vermont Department of Labor enforces the state minimum wage and overtime laws. In addition, under a state law, the department also forces employers to honor the terms of any written wage agreements, such as vacation, holiday or sick pay, or severance pay. The state Wage and Hour program also answers questions on child labor issues and minimum wage complaints.

When an employee works more than 40 hours a week, federal law says that worker is entitled to 1.5 times the usual hourly rate, or “overtime”. Many states have also enacted overtime laws. In Delaware, Idaho and others that don’t have a state overtime law, most employees are covered by the federal law. If federal law doesn’t apply in these states, many workers are not entitled to overtime.

Minimum wage and overtime laws vary a great deal among the 50 U.S. states. Among the states that have enacted statues for overtime, California seems to offer the worker the greatest benefit. A worker must receive overtime for hours worked in excess of 8 per day, or in excess of 40 hours per week. The seventh consecutive day worked entitles the employee to overtime all day, and after 8 hours on the seventh day, double time–twice the hourly rate–is paid.

Connecticut also provides overtime for workers on the seventh day in a row, but only for workers in hotels and restaurants. Kentucky also pays overtime on day seven, regardless of the number of hours worked up till then.

Many of the states across the country, such as Illinois, Nebraska and Michigan merely follow the federal law’s lead and require overtime pay for more than 40 hours per week.State laws for employees who also receive tips, also vary. Federal law ranks minimum wage for tipped employees at $2.13 per hour. As with the overtime laws, many states simply mirror the federal law and pay $2.13 as well.

A few states pay slighter higher, like Wisconsin at $2.33 per hour and Michigan at $2.65 per hour. At the low end of the range is Kansas with $1.59 per hour.

At the opposite end of the spectrum are those states that don’t allow much, if any, credit for a worker’s tips. Companies in Hawaii are allowed to pay tipped workers $7.00 per hour instead of $7.25, the state minimum. Washington allows employers no tips at all and requires employers to pay tipped and non-tipped workers the state minimum wage, which on January 1, 2008 will be $8.07 per hour.

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