labor lawAdivision of labor law center

On January 1, 2009, the Vermont minimum wage will increase by 38 cents, from $7.68 per hour to $8.06 per hour. This increase puts the Vermont minimum wage in the top five in the nation. The nation’s highest minimum wage is in Washington, at $8.55 per hour in 2009. The second highest minimum wage is in Oregon, at $8.40 per hour.

The Vermont minimum wage for tipped employees increases on January 1, 2009 by 19 cents, from $3.72 per hour to $3.91 per hour. Under state law, this amount applies to “a service or tipped employee.” This is defined as an employee of a hotel, motel, tourist place or restaurant who customarily and regularly receives more than $120 per month in tips. If the employee’s tips plus wages does not average at least the Vermont minimum wage over the pay period, the employer must pay the difference to the employee, in wages.

Every Vermont employer is required to prominently display a number of labor law posters, including the Vermont minimum wage poster. Failure to do so can result in citations, fines and penalties.

There are a number of exceptions to the Vermont minimum wage including those for agricultural workers, taxi drivers, domestic workers and newspaper delivery persons. In Vermont and under federal law, executives, administrators, professionals and outside sales persons are exempt from both the minimum wage and overtime laws.

Vermont employers are permitted to pay full-time high school students less than the state minimum wage, however, these employees must be paid at least the federal minimum wage, currently $6.55 per hour.

The Vermont minimum wage statute contains a provision that if the federal minimum wage is higher, the state minimum wage will automatically equal it. This law became effective on July 1, 1989. The law is not expected to have any impact on wages in 2009. The current federal minimum wage is $6.55 per hour. On July 24, 2009, the federal minimum wage will increase to $7.25 per hour. However, that is still well below the Vermont minimum wage of $8.06 per hour. With no additional increases to the federal minimum wage projected for the next few years, the Vermont minimum wage is likely to remain higher.

The Vermont Department of Labor  enforces the state wage and hour laws, and assists employees in collecting unpaid wages.

The Vermont minimum wage increases each year based on the cost of living, as reported by the CPI or Consumer Price Index. Due to a higher than average inflation rate this year, the increase is more than usual.

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