labor lawAdivision of labor law center

Vermont enacted a law in 2006 to annually increase the state’s minimum wage. On January 1, 2008, the state minimum wage increased 15 cents from $7.53 to $7.68 per hour. The minimum wage for tipped workers increased as well, increasing 7 cents from $3.65 to $3.72 hour.

Several employees are exempt from the Vermont state minimum wage law. Among them are full-time high school students, agricultural workers, cab drivers, newspaper delivery persons, workers in domestic service and some employees of non-profit agencies. Several of these workers are eligible for the federal minimum wage of $5.85 per hour.

Vermont law mandates that a worker who is fired must be given his or her final paycheck within 72 hours. When an employee resigns, the final paycheck should be paid on the next regular payday. If the company has no regular payday, the employer must provide the final paycheck by the following Friday.

Laws regarding the state minimum wage and state overtime are enforced by the Vermont Department of Labor. This department also mandates that employers honor vacation, holiday, sick or severance pay, or any other terms of a written agreement. Child Labor issues and minimum wage complaints are handled by the Vermont Wage and Hour program.

Federal law mandates that when an employee works more than 40 hours in one week, that employee is entitled to pay at 1.5 times the usual hourly rate. The Vermont state minimum wage law requires overtime for more than 40 hours in a week, too. The Vermont law, however, excludes several industries. The transportation industry, service industries, hotels, restaurants and amusement parks are all exempt from paying overtime in Vermont.

A number of states have established their own overtime laws. In states that do not have an overtime law at the state level, such as Delaware and Idaho, workers are often covered by the federal overtime statute. If an employee in a state without overtime laws doesn’t qualify for federal overtime, then that employee isn’t entitled to overtime at all.

The year 2008 has already brought several changes in state minimum wage laws, and is slated for several more.

On New Years Day, 2008, Arizona, California, Colorado, Delaware, Florida, Iowa, Massachusetts, Missouri, Montana, New Mexico, Ohio, Oregon, Vermont and Washington, fourteen states in all, enacted raises in their state minimum wage rate.

A number of other minimum wage changes are on the horizon for 2008. On July 1, 2008, five more states will follow suit. Michigan and Illinois will each raise its state minimum wage by twenty-five cents. Michigan’s will go from $7.15 to $7.40 per hour. Illinois’s will rise from $7.50to $7.75.

Five other states will enact less dramatic increases to their minimum wage rates. For example, both Michigan’s and Illinois’s rates will receive a 25 cent bump. The minimum wage in Illinois will increase from $7.50 to $7.75. Michigan’s minimum will be raised from $7.15 to $7.40 per hour.

The July 24, 2008 increase in the federal minimum wage is a result of the Fair Minimum Act of 2007, which President George W. Bush signed into law on May 24, 2006. The Act set up a three step system of increases. The July 24, 2008 bump will be the second step of that system.

In addition a number of states, the District of Columbia ties its minimum wage to the federal minimum. In D. C., however, the law requires the minimum wage rate to be at least $1.00 more per hour than the federal rate. On July 24, 2008, D.C.’s minimum wage will increase to $7.55 per hour.

These changes in the minimum wage law require employers to update their labor law posters, both for their own state laws, and for the federal law changes. Companies seeking updated information can visit www.laborlawcenter.com.

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